CIS Tax Return Rebate for Self-Employed Accountants in Ilford:

CIS Tax Return Rebate for Self-Employed Accountants in Ilford: A Comprehensive Guide

Introduction:
Navigating the complexities of tax returns can be daunting for self-employed accountants in Ilford. However, understanding the Construction Industry Scheme (CIS) tax return rebate is crucial to maximising your financial efficiency. This guide, referencing GM Professional Accountants, offers an in-depth look into the CIS tax return process, ensuring you stay informed and compliant.

Find out more

What is CIS?
The Construction Industry Scheme (CIS) impacts many self-employed professionals in the construction sector, including accountants who work as contractors or subcontractors. Under CIS, contractors deduct money from subcontractors’ payments and pass it to HM Revenue and Customs (HMRC). These deductions count as advance payments towards the subcontractor’s tax and National Insurance.

Key Filing Date for 2024:
Mark your calendars: the key filing date for the 2024 tax year is April 5, 2024. Ensure your documents are prepared well in advance to avoid last-minute hassles.

Case Study:
Consider the case of John Doe, a self-employed accountant in Ilford, who successfully claimed a substantial rebate for the 2022-2023 tax year. By accurately reporting his income and CIS deductions, John was able to claim a rebate of £2,000, significantly impacting his financial planning for the year.

How Can GM Professional Accountants Help?
Specialising in CIS tax returns, GM Professional Accountants provide expert advice and services to ensure you’re making the most of your tax situation. Their tailored approach means you receive a service that’s specifically designed for your unique circumstances.

Key Benefits of a CIS Tax Rebate:
A CIS tax rebate can offer several financial benefits, including:

  • Improved cash flow
  • Potential refunds on overpaid tax
  • Fast and responsive service

Compliance and Regulations:
Staying compliant with HMRC regulations is vital. This includes accurate record-keeping and timely filing of returns. The government’s CIS guidance provides a comprehensive overview of your responsibilities under the scheme.

Conclusion:
For self-employed accountants in Ilford, understanding and efficiently managing CIS tax returns is pivotal. With the right knowledge and the assistance of seasoned professionals like GM Professional Accountants, you can navigate this terrain successfully. Remember, the deadline for the 2024 filing is April 5, 2024 – plan accordingly to make the most of your tax situation.


Selling Your Property 2024 in the UK: Navigating Tax Implications with GM Professional Accountants

Selling Your House in the UK: Navigating Tax Implications with GM Professional Accountants

Understanding the Tax Landscape When Selling Your Property

Selling a house in the UK can be a significant financial event, and it’s crucial to understand the tax implications that come with it. This blog post aims to shed light on the key considerations for homeowners in the UK, especially focusing on the tax aspects of selling a property. With expert guidance from GM Professional Accountants, you’ll be better equipped to navigate this complex landscape.

Find out more

  • Capital Gains Tax on Property UK
  • Property Tax Advice UK
  • UK House Selling Tax Guide
  • Expert Accountants for Property Sales

Our goal is to inform UK homeowners about the tax responsibilities and opportunities when selling a house, positioning GM Professional Accountants as the go-to experts for financial guidance in this process.


The Tax Implications of Selling Your House in the UK

When you sell a property in the UK, you may be liable to pay Capital Gains Tax (CGT) if the property has increased in value. It’s important to be aware of the filing date for CGT, which for the tax year 2023-2024 is 31st January 2024.

Case Study: Navigating Capital Gains Tax

Consider the case of John and Emma, who sold their property in May 2023. After living in the house for several years, the property’s value increased by £50,000. They consulted GM Professional Accountants to understand their tax liabilities. Our experts helped them claim Private Residence Relief, significantly reducing their CGT liability.

Revised Tax-Free Allowance

For the 2023-2024 tax year, the tax-free allowance for CGT is now £6,000 per individual. This means if your property’s gain is below this threshold, you won’t owe CGT.

Understanding Residency and Relief

If the property was your main residence, you might be eligible for Private Residence Relief, reducing or eliminating CGT. Non-residents selling UK property also face specific tax considerations, which require professional advice.


Leveraging Expertise from GM Professional Accountants

GM Professional Accountants specialize in providing tailored advice for property sales. Our team stays updated on the latest tax regulations, ensuring our clients benefit from every available relief and exemption.

Connect with Experts

For personalized advice, contact our team at GM Professional Accountants.

Stay Informed

For more insights on UK tax matters, read our comprehensive guide on property tax.


Conclusion

Understanding the tax implications of selling a house in the UK is crucial for making informed decisions. By consulting with GM Professional Accountants, you can navigate these complexities with confidence. Remember, the key to successful property selling lies in expert guidance and timely action, especially considering the filing date of 31st January 2024 for the tax year 2023-2024.

Stay ahead of the curve with GM Professional Accountants, where expert advice meets unparalleled service.

Management Consultant Tax Deductions for Self Assessment tax in 2024

Management Consultant Tax Deductions: Maximizing Your Returns with GM Professional Accountants

As a management consultant in the UK, navigating the intricacies of tax deductions can be as complex as the business strategies you devise for your clients. With the filing date for the 2024 tax season fast approaching, it’s crucial to understand the various deductions available to you. In this comprehensive guide, we’ll explore key tax deductions that can significantly impact your financial health. Additionally, we’ll reference how GM Professional Accountants, a leader in financial services, can assist you in this process.

Find out more

Understanding Tax Deductions for Management Consultants

Tax deductions are expenses that can be subtracted from your taxable income, reducing the overall tax you owe. For management consultants, these deductions often include:

  1. Travel Expenses: If your consulting work requires you to travel, costs such as flights, hotels, and mileage can be deducted. This is particularly relevant for consultants who work with clients across different regions.
  2. Home Office Costs: With many consultants working remotely, a portion of home expenses like rent, utilities, and internet can be considered for deduction, provided the space is used exclusively for work.
  3. Professional Development: Courses, certifications, and conferences that enhance your consulting skills or industry knowledge are usually deductible.
  4. Equipment and Supplies: From laptops to specialized software, the tools needed to provide your services can be written off.

Case Studies: Real-World Applications

Case Study 1: Travel Deductions Maximization

In 2023, Sarah, a London-based management consultant, travelled extensively for client meetings. By meticulously tracking her travel expenses, including £3,000 on flights and £1,200 on accommodations, she managed to claim substantial deductions with the help of GM Professional Accountants.

Case Study 2: Home Office Deduction

John, a Manchester-based consultant, transitioned to remote work in 2023. With guidance from GM Professional Accountants, he successfully claimed a portion of his rent and utility bills, amounting to £2,500 in deductions.

Filing Date and Compliance

The deadline for the 2024 tax season is looming. It’s important to ensure that all deductions are accurately reported by the filing date. Late submissions can lead to penalties, making timely filing crucial.

How GM Professional Accountants Can Assist

At GM Professional Accountants, we specialize in helping management consultants like you maximize your tax deductions while ensuring compliance with HMRC regulations. Our team stays abreast of the latest tax laws, providing you with tailored advice to enhance your financial well-being.

Conclusion

Understanding and leveraging tax deductions is vital for management consultants seeking to maximize their earnings and minimize tax liabilities. With the 2024 filing date approaching, now is the time to get your finances in order. GM Professional Accountants is here to guide you through every step of the process, ensuring you make the most of your tax deductions.

For more information on how we can assist you, visit GM Professional Accountants.

Remember, staying informed and seeking expert advice is key to navigating the complexities of tax deductions in the ever-evolving landscape of financial regulations.

Are Dentist be self employed? for tax purposes in 2024


As leaders in the UK financial services for healthcare professionals, GM Professional Accountants address a key concern for locum dentists: Are they classified as self-employed? This question is essential for understanding their tax responsibilities and ensuring adherence to HM Revenue and Customs (HMRC) standards.

Discover More

Self-Employment Status of Locum Dentists In the UK, whether locum dentists are self-employed depends on certain HMRC criteria. These include control over their work, the obligation to provide services, and contract terms. Generally, locum dentists working with dental clinics or independently often fall under the self-employed category, especially when they exhibit autonomy in their professional activities.

Find out more

Case Study: Dr. Emily White, Locum Dentist Consider the case of Dr. Emily White, a locum dentist. She contracted with several dental practices in 2023, choosing her work hours and locations, which aligns with the self-employment criteria. Consequently, she needed to be ready for the online tax return deadline for the 2023/2024 tax year, set for January 31st, 2024.

Tax Responsibilities and Considerations for Locum Dentists Self-employed locum dentists must manage their tax affairs, which includes:

  • Registering for Self-Assessment: It’s imperative to register with HMRC to avoid penalties.
  • National Insurance Contributions: Self-employed professionals pay Class 2 and Class 4 NICs, depending on their profits.
  • Paying Income Tax: Based on the profits earned in the tax year.

The Importance of Accurate Record-Keeping Maintaining precise financial records is critical, as highlighted in a recent HMRC update. This aids in correct tax filing and is essential during audits.

How GM Professional Accountants Can Assist Our expertise at GM Professional Accountants extends to supporting locum dentists with their tax matters, offering services like:

  • Tax Return Preparation and Filing: Assuring adherence to current tax laws and regulations.
  • Advice on Allowable Expenses: Identifying deductible expenses to maximize tax efficiency.
  • Ongoing Financial Advice: Providing continuous support and counsel.

Conclusion Understanding the self-employment status of locum dentists is key for tax compliance in the UK. GM Professional Accountants offers the necessary support to navigate these intricacies effortlessly. Visit our blog for more insights and professional guidance.

This article is for informational purposes only and does not constitute financial advice. For personalized advice, consult GM Professional Accountants.

Are locum doctors self employed?

Are Locum Doctors Self-Employed? Understanding Tax Obligations in the UK

As experts in the UK financial services market, GM Professional Accountants delves into a crucial question for locum doctors: Are they considered self-employed? This exploration is not only vital for understanding tax obligations but also for ensuring compliance with HM Revenue and Customs (HMRC) regulations.

Find out more

The Self-Employment Status of Locum Doctors

In the UK, determining whether locum doctors are self-employed hinges on specific criteria set by HMRC. These include the level of control over work, obligation to provide services, and the nature of the contract. Typically, locum doctors working through agencies or directly with medical practices can be considered self-employed, particularly if they meet the criteria of autonomy in their work.

Case Study: Dr. Jane Smith, Locum GP

Dr. Jane Smith, a locum GP, exemplifies this scenario. Contracting with various clinics throughout 2023, she maintained control over her hours and work location, fulfilling the self-employment criteria. As a result, she faced the filing date for the 2023/2024 tax year, which is 31st January 2024 for online tax returns.

Tax Obligations and Considerations

Being self-employed, locum doctors are responsible for their tax affairs. This includes:

  • Registering for Self-Assessment: It’s crucial to register with HMRC. Failure to do so can result in penalties.
  • National Insurance Contributions: Self-employed individuals pay Class 2 and Class 4 NICs, depending on their profits.
  • Paying Income Tax: This is based on the profits earned during the tax year.

Importance of Accurate Record-Keeping

Accurate record-keeping is vital. In a recent HMRC update, the importance of maintaining detailed financial records is emphasized. This assists in accurate tax return filings and can be crucial in the event of an audit.

How GM Professional Accountants Can Help

At GM Professional Accountants, we specialize in aiding locum doctors with their tax affairs. Our services include:

  • Tax Return Preparation and Filing: Ensuring compliance with the latest tax laws and regulations.
  • Advice on Allowable Expenses: Maximizing tax efficiency by identifying deductible expenses.
  • Ongoing Financial Guidance: Offering year-round support and advice.

Conclusion

Understanding whether locum doctors are self-employed is crucial for tax compliance in the UK. With the support of experienced accountants like those at GM Professional Accountants, locum doctors can navigate these complexities with ease. For more insights and professional guidance, visit our blog section.


This article is intended for informational purposes only and does not constitute financial advice. For tailored advice, consult GM Professional Accountants.

Overseas Workday relief remittance basis 2024 guide

Understanding Overseas Workday Relief and the Remittance Basis in the UK: A 2024 Guide by GM Professional Accountants

Posted  by GM Professional Accountants

Navigating the complexities of UK tax law can be challenging, especially for those who work both in the UK and overseas. One area that often causes confusion is the Overseas Workday Relief (OWR) and the Remittance Basis of taxation. In this guide, we’ll break down these concepts, focusing on the critical dates for 2024, and provide practical advice for making the most of these provisions.

Find out more

What is Overseas Workday Relief (OWR)?

Overseas Workday Relief is a UK tax relief available to non-domiciled individuals working in the UK and abroad. It allows a proportion of their foreign earnings, related to their workdays outside the UK, to be exempt from UK tax, provided these earnings are not brought into the UK.

Who Qualifies for OWR?

To be eligible for OWR, you must:

  • Be a UK resident in the tax year.
  • Have a foreign domicile under UK law.
  • Be employed and perform duties both in the UK and overseas.

Understanding the Remittance Basis

The Remittance Basis is an alternative tax treatment available to UK residents who are non-domiciled. Under this rule, you are taxed on your UK income and gains, but your foreign income and gains are only taxed if they are brought into, or ‘remitted’ to, the UK.

Key Dates for 2024

  • 6th April 2024: Start of the 2024/25 tax year. You must claim OWR on your tax return for this year.
  • 31st January 2025: Deadline for online self-assessment tax returns for 2024/25. Ensure your claims for OWR and use of the Remittance Basis are included.

How to Claim OWR and Use the Remittance Basis

  1. Determine Your Residence and Domicile Status: This is fundamental in establishing your eligibility.
  2. Keep Detailed Records: Maintain accurate records of your workdays in and out of the UK, and of your foreign income.
  3. Separate Your Income: Keep your overseas income separate from your UK income. This is crucial for claiming OWR and using the Remittance Basis effectively.
  4. File Your Tax Return: Include your claim for OWR in your self-assessment tax return. Consider professional advice to ensure accuracy.

Why Consult GM Professional Accountants?

At GM Professional Accountants, we specialize in providing expert advice on UK tax matters for non-domiciled individuals. Our team can help you:

  • Understand your tax position and eligibility for reliefs like OWR.
  • Navigate the complexities of the Remittance Basis.
  • Ensure compliance with UK tax laws while optimizing your tax position.

For more detailed guidance and professional support, visit our website or contact us directly.

Conclusion

Understanding and utilizing Overseas Workday Relief and the Remittance Basis can significantly impact your tax situation in the UK. By staying informed and seeking expert advice, you can ensure compliance and optimize your tax affairs.

For more information on UK tax laws and how they might affect you, keep an eye on our blog or reach out to GM Professional Accountants for tailored advice and support.

GM Professional Accountants – Your trusted partner in navigating the complexities of UK tax.


HM Revenue & Customs is a valuable resource for further information on tax laws in the UK.

Companies House & HMRC Corporation Tax Return Filing 2024: Essential Guidelines


Navigating Corporation Tax Returns for 2024: A Comprehensive Guide by GM Professional Accountants


Introduction:

As we approach the 2024 Corporation Tax filing deadline, it’s crucial for businesses to understand the complexities of the filing process with Companies House and HMRC. GM Professional Accountants, a leader in financial services within the UK, brings you an insightful guide on navigating this process efficiently. Our focus is not only on the procedure but also on integral aspects like iXBRL tagging and the software required for a seamless experience.


Understanding the Filing Process:

  1. Registration and Deadlines:
    Before filing your Corporation Tax Return, ensure that your business is registered with HMRC and Companies House. The deadline for the 2024 tax year is typically 12 months after the end of your company’s financial year. Mark your calendar to avoid late filing penalties. HMRC’s official website provides detailed information on registration and deadlines.
  2. Preparing Financial Statements:
    Prepare your company’s financial statements, including the Profit and Loss Account, Balance Sheet, and any relevant notes. These statements form the basis of your Corporation Tax Return.
  3. iXBRL Tagging:
    HMRC requires that financial statements be filed in an iXBRL (Inline eXtensible Business Reporting Language) format. This digital reporting language helps in the efficient processing and analysis of financial information. GM Professional Accountants offers expert iXBRL tagging services to ensure compliance and accuracy.
  4. Utilizing the Right Software:
    To submit your Corporation Tax Return, you need compatible software that supports HMRC’s filing system. There are several HMRC-approved software options available, tailored to different business needs. This list can help you choose the right one.
  5. Filing the Return:
    Once your financial statements are ready and tagged, use your chosen software to submit the Corporation Tax Return to HMRC. Ensure that the information is accurate to avoid any discrepancies.

Key Dates to Remember:

  • Filing Deadline: 12 months after your company’s financial year-end.
  • Payment Deadline: 9 months and one day after your company’s financial year-end.

GM Professional Accountants: Your Partner in Compliance:

At GM Professional Accountants, we specialize in assisting businesses with their Corporation Tax Return filings. Our services include preparing financial statements, iXBRL tagging, and advising on the best software for your specific needs. We strive to make the filing process as smooth and stress-free as possible.

For further assistance or to schedule a consultation, visit our website.


Filing your Corporation Tax Return accurately and on time is crucial for your business. By following this guide and leveraging the expertise of GM Professional Accountants, you can ensure compliance with HMRC regulations and avoid any unnecessary penalties.

Stay informed, stay compliant, and let GM Professional Accountants guide you through the complexities of Corporation Tax Return filing.



The Advantages of Using Professional Accountants for Corporation Tax Return Filing


Enhanced Accuracy and Compliance:

Professional accountants, like those at GM Professional Accountants, have in-depth knowledge of the latest tax laws and filing requirements. This expertise is crucial in ensuring that your Corporation Tax Returns are accurate and fully compliant with HMRC regulations. By reducing the risk of errors, professional accountants help you avoid potential penalties and legal issues.

Time and Cost Efficiency:

Filing Corporation Tax Returns can be time-consuming, especially for business owners who need to focus on their core operations. By outsourcing this task to professional accountants, you can save valuable time and resources. Moreover, their proficiency can lead to more efficient tax planning, potentially resulting in tax savings.

iXBRL Tagging Expertise:

iXBRL tagging is a complex requirement of the filing process. Accountants proficient in iXBRL ensure that your financial statements are correctly tagged, fulfilling HMRC’s digital reporting requirements. This expertise is crucial in maintaining the integrity of your financial data.

Strategic Financial Advice:

Beyond just filing tax returns, professional accountants offer strategic advice on financial planning and management. They can provide insights into optimizing your tax position, managing cash flow, and planning for future growth, which can be invaluable for business decision-making.

Reduced Stress and Increased Peace of Mind:

Delegating the responsibility of tax filing to experts can significantly reduce the stress associated with tax deadlines and compliance. Knowing that your tax affairs are being handled professionally provides peace of mind, allowing you to focus on running your business.

Ongoing Support and Representation:

In the event of an HMRC inquiry or audit, having professional accountants by your side can be a significant advantage. They can offer ongoing support, represent your business during audits, and provide expert advice on dealing with any issues that arise.


Conclusion:

Utilizing the services of professional accountants like GM Professional Accountants for your Corporation Tax Return filing offers numerous benefits. From ensuring accuracy and compliance to providing strategic financial advice, their expertise is an invaluable asset for any business looking to navigate the complexities of tax filing effectively.

For more information on how GM Professional Accountants can assist your business, visit our website.



Accountant for Locum Doctor Self Employed Tax UTR: Your Ultimate Guide to Financial Success in the UK

The Comprehensive Guide to Accounting for Self-Employed Locum Doctors in the UK

Introduction

Welcome to the world of self-employment for locum doctors in the UK, a realm where flexibility meets professional autonomy. Navigating through the financial intricacies can be daunting, but worry not! This guide aims to demystify the essentials of accounting for self-employed locum doctors. From the benefits of being self-employed to understanding allowable expenses, we’ve got you covered. For expert advice and tailored services, remember to consult with GM Professional Accountants, specialists in this field.

Find out more

Benefits of Being Self-Employed

Self-employment brings a plethora of advantages for locum doctors in the UK:

  1. Flexibility and Control: Choose when and where you work, allowing for a better work-life balance.
  2. Financial Gains: Potential to earn more than salaried counterparts.
  3. Tax Efficiency: Access to certain tax allowances and reliefs.

Registration in the UK

To kickstart your journey as a self-employed locum doctor, you must register with HM Revenue & Customs (HMRC). You’ll need a Unique Taxpayer Reference (UTR) number, crucial for your tax dealings. You can register online via the HMRC website.

Allowable Expenses

Understanding which expenses you can claim is vital for tax efficiency. Common allowable expenses include:

  1. Medical Equipment and Supplies: Necessary for your practice.
  2. Travel Expenses: Costs incurred for traveling to different practices.
  3. Professional Fees: GMC registration, indemnity insurance, and CPD courses.
  4. Home Office Costs: If you work from home, a portion of utility bills and rent can be claimed.

Frequently Asked Questions

Q1: How often do I need to file taxes as a self-employed locum doctor?
A1: You must file a Self Assessment tax return annually.

Q2: Can I be employed and self-employed at the same time?
A2: Yes, it’s possible to be both, but ensure all income is declared.

Q2: What records should I keep?
A3: Maintain detailed records of all income and expenses, ideally for at least six years.

Conclusion

Embarking on the path of a self-employed locum doctor in the UK is an exciting venture. With the benefits of flexible working, potential financial gains, and tax efficiencies, it offers a rewarding career choice. Remember, keeping abreast of your financial responsibilities and understanding allowable expenses are crucial. For expert guidance and services tailored to your needs, consult with GM Professional Accountants, who specialize in providing comprehensive accounting solutions for healthcare professionals.


Accountants for Limited Company: Companies House Filing – 2024 Guide

Navigating Companies House Filing for Limited Companies: A Comprehensive Guide by GM Professional Accountants

Introduction:
For limited companies in the UK, understanding the intricacies of Companies House filing is crucial. The process, often perceived as complex and daunting, requires a clear understanding of filing dates, potential penalties, and the specific formats for submitting accounts. This guide, brought to you by GM Professional Accountants, aims to simplify this process, offering clear guidelines and examples to ensure your compliance with Companies House requirements.

Find out more

Key Filing Dates and Deadlines:
Every limited company must adhere to specific deadlines for filing their accounts with Companies House. Typically, your accounts must be filed 9 months after your company’s financial year-end. For example, if your financial year ends on 31st March, your deadline will be 31st December. Missing these deadlines can lead to significant penalties.

Penalties for Late Filing:
Late filing can result in penalties that escalate over time. These start from £150 for being up to one month late, and can go up to £1,500 for being more than six months late. Repeated late filings double these penalties. Hence, timely filing is not just a legal requirement, but also a financial imperative.


Formats for Filing Accounts and Their Thresholds

Formats for Filing Accounts:
Limited companies in the UK must choose the appropriate format for filing their accounts, primarily between FRS 102 and FRS 105. The selection depends on the size and complexity of the business.

  • FRS 102: This is applicable to small, medium-sized, and large companies. It requires detailed reporting and comprehensive disclosures. The threshold for FRS 102 for small companies is having a turnover of not more than £10.2 million, balance sheet total not more than £5.1 million, and no more than 50 employees. Medium-sized companies must meet at least two of the following criteria: a turnover of not more than £36 million, a balance sheet total of not more than £18 million, and not more than 250 employees.
  • FRS 105: Designed specifically for micro-entities, FRS 105 simplifies the reporting process with reduced disclosure requirements. A company can use FRS 105 if it meets at least two of the following conditions: a turnover of not more than £632,000, a balance sheet total of not more than £316,000, and not more than 10 employees.

Utilizing GM Professional Accountants’ Expertise:
GM Professional Accountants can help you determine whether FRS 102 or FRS 105 is appropriate for your business, ensuring compliance with reporting standards while taking advantage of the simplifications available to smaller businesses.



Double Taxation Relief on Capital Gains Tax for UK Residents Selling Land in India

Double Taxation Relief on Capital Gains Tax for UK Residents Selling Land in India

Introduction

Selling property in a foreign country often leads to a complex situation concerning tax obligations. This is particularly true for UK residents who sell land in India. They face the possibility of being taxed in both countries. However, relief is available through the Double Taxation Agreement (DTA) between the UK and India. This post, referencing the expertise of GM Professional Accountants, a leading accounting firm, will guide you through the process of obtaining relief on Capital Gains Tax (CGT) when selling land in India.

Find out more

Understanding Capital Gains Tax in the UK and India

When a UK resident sells land in India, they may be liable to pay CGT in both countries. In India, the tax is levied on the gains made from the sale of the property. The UK also taxes worldwide income and gains of its residents. Without relief measures, this scenario could lead to double taxation.

The Double Taxation Agreement (DTA)

Thankfully, the DTA between the UK and India provides relief from double taxation. This agreement allows taxpayers to offset the tax paid in one country against their tax liability in the other. This ensures that the same income is not taxed twice.

How Does Double Taxation Relief Work?

  1. Calculate the Gain in Both Countries: First, determine the capital gain as per the tax laws of both India and the UK.
  2. Pay the Tax in India: Since the land is in India, tax is typically paid there first.
  3. Claim Relief in the UK: When filing your UK tax return, declare the income and tax paid in India. You can claim relief for the amount of tax paid in India against your UK tax liability on the same gains.

The Role of Professional Accountants

Navigating the DTAs and understanding the tax implications in both countries can be challenging. This is where firms like GM Professional Accountants come in. They offer specialized services to ensure that you comply with all tax regulations and optimize your tax position.

Services Offered:

  • Expert advice on DTAs
  • Assistance in calculating capital gains in both countries
  • Guidance on tax payment in India
  • Support in claiming relief on your UK tax return

Conclusion

Selling land in India as a UK resident doesn’t have to lead to double taxation. By understanding your obligations under both UK and Indian tax laws and utilizing the DTA, you can efficiently manage your tax liabilities. Professional guidance from firms like GM Professional Accountants can be invaluable in navigating this complex area.

For further details on CGT and DTAs, visit HM Revenue & Customs and The Income Tax Department of India.


Disclaimer: This blog post is for informational purposes only and does not constitute professional tax advice. For tailored advice, please consult a qualified tax professional.

HMRC and Overseas Workday Relief: Navigating 3 Years of Tax Benefits – A Detailed Guide

Mastering Overseas Workday Relief in the UK: A Three-Year Strategic Guide

Introduction:

Navigating the intricacies of UK tax laws can be daunting, especially for those who work both in the UK and abroad. Among the key considerations for such professionals is understanding and effectively utilizing the Overseas Workday Relief (OWR). This essential guide, drawing expertise from GM Professional Accountants, aims to simplify the OWR, focusing on a three-year period. We’ll provide comprehensive guidelines and highlight potential pitfalls to avoid.

Find out more

Understanding Overseas Workday Relief (OWR):

OWR is a tax relief in the UK for non-resident employees who spend part of their working time outside the UK. This relief is applicable for up to three consecutive tax years and allows for a portion of the earnings to be exempt from UK taxation, based on the days worked abroad.

Eligibility for OWR:

  1. Non-Resident Status: You must be a non-resident in the UK for tax purposes.
  2. Overseas Work: A substantial part of your employment duties must be performed outside the UK.
  3. Three-Year Rule: OWR can be claimed for the first three years of non-residency in the UK.

Key Guidelines:

  1. Maintain Detailed Records: Keep accurate records of your workdays, both in the UK and overseas.
  2. Understanding UK Tax Laws: Familiarize yourself with the UK’s specific rules governing OWR.
  3. Compliance with Deadlines: Be aware of and comply with the UK’s tax filing deadlines.

Common Pitfalls:

  1. Misinterpreting Residency Status: Understanding the UK’s definition of tax residency is crucial to avoid erroneous claims.
  2. Incorrect Workday Count: Ensure accurate counting of workdays to avoid claim rejections.
  3. Neglecting UK-specific Rules: Be mindful of the unique requirements of UK tax law regarding OWR.

Seeking Professional Advice:

For personalized and accurate advice, consider consulting with tax professionals like GM Professional Accountants. Their expertise in UK tax laws can provide you with tailored guidance and ensure full compliance.

Useful External Resources:

To deepen your understanding, explore authoritative resources on UK taxation. The HM Revenue & Customs (HMRC) website is an excellent starting point for official information. Additionally, resources like The Chartered Institute of Taxation offer further insights into UK tax matters.

Conclusion:

Effectively managing your tax obligations under the UK’s Overseas Workday Relief requires careful planning and a thorough understanding of tax regulations. By following these guidelines and being aware of common mistakes, you can navigate these complexities with greater ease. Remember, the advice of tax professionals like GM Professional Accountants is invaluable in ensuring compliance and maximizing your tax benefits.

Disclaimer: This blog post is for informational purposes only and does not constitute professional tax advice. Consult with a tax professional for advice tailored to your specific situation.


HMRC Individual Small Business Compliance Letter: A Taxpayer’s Guide for Understanding and Response

Navigating HMRC’s Small Business Compliance Letter: Guidance from GM Professional Accountants

The HM Revenue & Customs (HMRC) recently issued compliance letters to small businesses, a move that can be unsettling for many entrepreneurs. Understanding the content and implications of these letters is crucial for maintaining good standing with HMRC. At GM Professional Accountants, we specialize in guiding small businesses through these often-complex interactions with tax authorities.

Understanding Your Compliance Letter

A compliance letter from HMRC typically indicates that they wish to review your business’s tax affairs. This could be for a variety of reasons, such as discrepancies in your tax returns or random checks that HMRC performs routinely.

Key Points in the Letter:

  1. Specific Concerns: HMRC will outline the particular areas of your tax return or business records they are interested in.
  2. Required Action: The letter will detail what you need to do, whether that’s providing additional documentation or correcting errors.
  3. Deadlines: Note any deadlines for responding to the letter. Timely response is crucial.

Responding to the Compliance Letter

1. Don’t Panic: Receiving such a letter doesn’t always mean there is a serious problem. Sometimes, HMRC just needs more information to understand your tax position better.

2. Review Your Records: Before responding, review your financial records and tax returns for the period in question. This will help you understand HMRC’s concerns and prepare your response.

3. Seek Professional Help: It’s wise to consult with a professional accountant. GM Professional Accountants have extensive experience in dealing with HMRC inquiries and can provide expert assistance to ensure your response is accurate and comprehensive.

The Role of GM Professional Accountants

Our services in this area include:

  • Reviewing the Letter: We’ll help you understand the content and implications of the compliance letter.
  • Preparing Documentation: We can assist in gathering and preparing any necessary documentation requested by HMRC.
  • Representation: If needed, we can represent your business in discussions with HMRC, ensuring that your case is presented effectively and professionally.

External Resources for Further Reading

Conclusion

Receiving a compliance letter from HMRC can be daunting, but with the right approach and professional guidance, it can be addressed effectively. GM Professional Accountants is committed to assisting small businesses in these matters, ensuring compliance while minimizing disruption to your business.

For more expert advice and assistance, visit our GM Professional Accountants website.


Disclaimer: This blog post is for informational purposes only and does not constitute legal or tax advice. Each business situation is unique, and advice should be tailored to specific circumstances.

Healthcare Self-Assessment: Expert Strategies for UK Consultants Navigating Tax Registration and Structure Choices

Healthcare Consulting: Navigating Self-Assessment and Company Structure for Tax Efficiency

In the dynamic field of healthcare consulting in the UK, managing financial responsibilities is as crucial as the professional services you provide. Key decisions, such as choosing between operating as a sole trader or a limited company, and understanding self-assessment tax returns, can significantly impact your financial health. GM Professional Accountants specialize in guiding healthcare professionals through these decisions to optimize tax efficiency and ensure compliance.

Find out more

Understanding Self-Assessment Registration

For healthcare consultants, self-assessment tax returns are a mandatory aspect of financial management. This involves registering with HM Revenue and Customs (HMRC), a critical step for accurate taxation on your income. The registration can be completed online on the HMRC website, and it’s essential to register by October 5th in your business’s second tax year to avoid penalties.

At GM Professional Accountants, we provide assistance in navigating this process, ensuring accurate reporting and adherence to deadlines.

Limited Company vs. Sole Trader: Making the Right Choice

Deciding whether to operate as a sole trader or establish a limited company is a significant choice for healthcare consultants, each with distinct tax implications and legal responsibilities.

Sole Trader

As a sole trader, you manage your business individually and are responsible for keeping records of sales and expenses. This structure is typically simpler but lacks the financial protection offered by a limited company. Guidelines for setting up as a sole trader are available on the UK government portal.

Limited Company

A limited company stands as a separate legal entity, offering limited liability protection but requiring more complex management and reporting. Information on establishing a limited company can be found on Companies House.

GM Professional Accountants can assist in evaluating your situation, considering annual income, potential tax savings, and personal liability, to identify the most advantageous structure for your consultancy.

Tax Rates and Implications

Your choice between sole trader and limited company status significantly affects how you are taxed. For sole traders, taxation involves Income Tax and National Insurance on profits. In the 2023/2024 tax year, the basic Income Tax rate is 20% on profits from £12,571 to £50,270, as detailed on the HMRC website.

For limited companies, the Corporation Tax rate is currently 25% on all profits. Additionally, personal tax applies if you draw a salary or dividends. Effective tax planning is essential to maximize your take-home pay while complying with tax regulations.

Conclusion

Effective financial management is pivotal for healthcare consultants in the UK. GM Professional Accountants offers tailored advice to align with your professional objectives and personal circumstances. Our expertise in tax planning, self-assessment, and business structuring ensures informed decision-making, tax optimization, and regulatory compliance.

Contact GM Professional Accountants for personalized guidance and take a strategic step towards achieving financial efficiency and compliance in your healthcare consulting career.

Self-Assessment Tax Registration for Consultants: A Complete Guide by GM Professional Accountants


Understanding Self-Assessment Tax Registration and Compliance for UK Consultants: A Guide by GM Professional Accountants

Providing Expert Financial Guidance for Your Consulting Business


The world of taxation can often seem daunting, especially for consultants who are navigating the complexities of financial compliance in the UK. At GM Professional Accountants, we specialize in offering tailored accounting services to consultants, ensuring that you are not just compliant, but also making the most of your financial opportunities. This comprehensive guide will walk you through the essentials of self-assessment tax registration, important deadlines, and tax rates, simplifying these crucial aspects of your consultancy business.

Find out more

Why Self-Assessment Tax Registration is Critical for Consultants

As a consultant, whether you’re operating as a sole trader, a partner in a business, or a director of a limited company, you are required to register for self-assessment tax. This process allows you to declare your income to HM Revenue and Customs (HMRC) and is essential for accurate tax payment and compliance.

Key Registration Dates and Procedure

Registration Deadline: It’s important to register by October 5th in your business’s second tax year. Delay in registration can result in penalties.

How to Register: You can register online through the HMRC website. Once registered, you will receive a Unique Taxpayer Reference (UTR) number, essential for your tax dealings.

Filing Dates and Penalties for Late Submission

Filing Deadline: The deadline for online tax returns is January 31st following the end of the tax year. For instance, for the tax year ending April 5, 2022, the deadline is January 31, 2023.

Penalties: Late filing can result in penalties starting from £100, increasing over time. It is crucial to adhere to these deadlines to avoid unnecessary charges.

Understanding Tax Rates for Consultants

The tax rate you’ll pay is on your income level. For the 2023/2024 tax year, the basic rate is 20% on income above your personal allowance and up to £50,270. The higher rate of 40% applies to income over this threshold, and there is an additional rate of 45% on income over £150,000. Remember, these rates can change, and it’s important to stay updated.

How GM Professional Accountants Can Help

At GM Professional Accountants, we provide specialized accounting services for consultants. Our expertise includes:

  • Personalized Tax Planning: We help you understand and leverage tax reliefs and allowances relevant to your consultancy business.
  • Compliance and Filing: Our team ensures that your tax returns are accurate and filed on time, avoiding any penalties.
  • Ongoing Financial Advice: We offer ongoing support to help you manage your finances efficiently, maximizing your income.

Elevating Your Financial Strategy with GM Professional Accountants

Choosing GM Professional Accountants means more than just meeting your tax obligations. It’s about enhancing your financial strategy, ensuring that your consultancy business thrives in a competitive market. We invite you to contact us for a consultation and start your journey towards efficient financial management.


This blog post is for informational purposes only and does not constitute financial advice. Tax laws and regulations are subject to change, and individual circumstances may vary.


Medical Practitioners’ Self-Assessment Tax : Top Accountants Guide 2024

How Medical Practitioners Can Master Self-Assessment 2024: A Guide to Registration, Tax Returns, and Basic Expenses

The world of medical practitioners is as complex as it is rewarding, with a myriad of responsibilities extending beyond patient care. Among these, understanding the nuances of self-assessment for tax purposes is crucial. This guide aims to demystify the process of self-assessment for medical professionals, detailing registration deadlines, tax return dates, and the basics of deductible expenses.

Find out more

Understanding Self-Assessment: A Key Responsibility for Medical Practitioners

Self-assessment is a system, HM Revenue and Customs (HMRC) collect Income Tax. Tax is usually deducted automatically from wages, pensions and savings, but people and businesses with other income must report it in a tax return. As a medical practitioner, whether you’re a general practitioner, consultant, or locum, it’s imperative to stay informed about tax obligations to avoid penalties and optimize your returns.

Be sure to subscribe to our Youtube Channel.
Subscribe Now

1. Registration for Self-Assessment

Medical practitioners must register for self-assessment before they can submit a tax return. The key dates are:

  • 5th October: Deadline to register if you have not submitted a return before.
  • 31st January: Deadline for online tax returns and for paying the tax you owe.

2. Understanding Tax Return Dates

After registration, keeping track of tax return dates is crucial:

  • 31st January: The deadline for submitting your online self-assessment tax return for the tax year ending 5 April.
  • 31st July: The deadline for your second ‘Payment on Account’ for the previous tax year.

3. Basic Expenses for Medical Practitioners

Medical practitioners can claim a range of expenses, including:

  • Professional fees and subscriptions.
  • Costs of using a home office.
  • Travel and accommodation expenses related to work.
  • Medical equipment and insurance costs.

Remember, accurate record-keeping is essential to justify these expenses.

GM Professional Accountants: Your Guide in the Complex World of Taxation

For medical professionals who find this process daunting, seeking expert advice is a wise step. GM Professional Accountants, specialists in medical accounting, offer tailored services to ensure that you are tax compliant and making the most of your financial opportunities. Their expertise in the field of medical accounting can provide peace of mind and potentially significant financial benefits.

Additional Resources

To further enhance your understanding and manage your tax responsibilities effectively, consider the following resources:

In conclusion, while the process of self-assessment for medical practitioners can seem intimidating, proper management and expert advice can turn it into an efficient, stress-free experience. Remember, staying ahead of registration deadlines, tax return dates, and understanding allowable expenses are key steps in this journey. With professional guidance from firms like GM Professional Accountants, you can navigate these waters with greater confidence and success.

Buy-to-Let Limited Companies House Accountant Specialist: Meeting Deadlines and accounting Period Ends


Navigating Companies House Filing for Buy-to-Let Limited Companies: Expert Guidelines

Understanding the Essentials with a Specialist Accountant

Introduction

For many buy-to-let landlords, transitioning to a limited company structure is an increasingly popular choice, offering significant tax and financial benefits. However, this move also introduces new complexities, particularly in complying with Companies House requirements. In this comprehensive guide, we’ll provide essential tips and guidelines for navigating Companies House filings, and how partnering with a buy-to-let limited companies house accountant specialist can streamline this process.

Find out more

Why Choose a Limited Company for Buy-to-Let?

  1. Tax Efficiency: Limited companies can be more tax-efficient than individual ownership, especially with higher tax rates and mortgage interest relief changes.
  2. Professional Management: Operating as a company lends a professional image, potentially attracting more serious tenants and partners.
  3. Limited Liability: Personal financial risk is reduced, as the company’s finances are separate from personal assets.
Be sure to subscribe to our Youtube Channel.
Subscribe Now

The Role of Companies House for Limited Companies

Companies House is the UK’s registrar of companies, responsible for incorporating and dissolving companies, and maintaining company information. As a buy-to-let limited company, you’re required to submit annual filings to Companies House, including:

  • Confirmation Statement: Verifying company details annually.
  • Annual Accounts: Financial statements and reports.
  • Company Tax Returns: Separate from personal tax affairs.

Key Filing Guidelines for Buy-to-Let Limited Companies

  1. Understand Your Deadlines: Late filings can result in penalties. Knowing your specific deadlines is crucial.
  2. Maintain Accurate Records: Ensure all company transactions are recorded accurately for smooth filing.
  3. Regularly Update Company Information: Any changes in company structure or management must be reported to Companies House.
  4. Prepare Financial Statements Compliantly: Ensure your financial statements meet statutory requirements.

Partnering with a Specialist Accountant

Navigating the complexities of Companies House can be challenging. This is where a specialist buy-to-let limited companies house accountant becomes invaluable. They offer:

  • Expertise in Taxation and Compliance: Deep understanding of property taxation and regulatory compliance.
  • Time and Cost Efficiency: Save time and avoid costly mistakes with professional assistance.
  • Tailored Financial Advice: Strategic advice tailored to your property portfolio.

2024 Updates on Filing Dates and Allowable Expenses

Updated Filing Deadlines for 2024:

  1. Confirmation Statement: This document must be filed annually within 14 days following the anniversary of the company’s incorporation. For a company incorporated on April 1st, 2023, the Confirmation Statement would be due by April 15th, 2024.
  2. Annual Accounts: The deadline for these is typically 9 months after the end of your company’s financial year. If your financial year ends on March 31st, your Annual Accounts would be due by December 31st, 2024.
  3. Company Tax Returns: These are due 12 months after the end of your accounting period. For the accounting period ending March 31st, 2024, the Company Tax Returns should be filed by March 31st, 2025.

Allowable Expenses for 2024:

  • Mortgage Interest: With ongoing changes in tax relief policies, understanding the specific restrictions and how they apply to your company is crucial.
  • Maintenance and Repairs: Includes costs directly related to property upkeep.
  • Professional Fees: Costs for services like accounting and legal advice are deductible.
  • Insurance Premiums: This covers premiums for insurance policies related to property and business operation.

Practical Examples and Specialist Accountant Value

Case Study 1: Renovation Expenses

In 2024, a buy-to-let landlord renovates one of their properties. A specialist accountant can help distinguish between capital and revenue expenses. For example, if the renovation costs total £10,000, the accountant could advise on how much of this cost is immediately deductible and how much needs to be capitalized and depreciated over time.

Case Study 2: Mortgage Interest Relief Changes

Consider a landlord affected by the reduction in mortgage interest relief. An accountant specializing in this area can illustrate the impact of these changes on the landlord’s financial statements and tax filings. For instance, if the landlord pays £5,000 in mortgage interest, the accountant can demonstrate how much of this expense is tax-deductible under the new rules.

Conclusion

For buy-to-let landlords operating through a limited company, understanding and complying with Companies House requirements is vital. By engaging with a specialist accountant, such as GM Professional Accountants, you can ensure efficient and compliant management of your property investments. Discover more about our tailored services for buy-to-let limited companies and ensure your financial success by visiting our dedicated page.


This blog post provides general guidelines and should not substitute professional advice tailored to your specific circumstances.

Dermatology Businesses: Self-Assessment for Sole Traders vs Limited Companies in the UK

Navigating Tax for Dermatology Businesses: Self-Assessment for Sole Traders vs Limited Companies in the UK


Introduction:

Navigating the complexities of taxation can be a daunting task for dermatology professionals operating in the UK. Whether you’re a self-employed sole trader or running a limited company, understanding the tax implications and the opportunities available to you is crucial for efficient financial management and compliance. This blog post aims to provide a comprehensive guideline on the key differences and considerations for dermatology businesses operating as sole traders and limited companies, focusing on self-assessment and Companies House requirements.

Find out more

Be sure to subscribe to our Youtube Channel.

Subscribe Now

Section 1: Understanding the Basics

  • Sole Trader vs Limited Company: Define and differentiate the two structures. Highlight the initial setup process, using GOV.UK resources for sole traders and Companies House registration for limited companies.
  • Tax Responsibilities: Explain the tax obligations for each structure. Include links to Self Assessment for sole traders and Corporation Tax for limited companies.

Section 2: Tax Tips for Sole Traders in Dermatology

  • Recording Expenses and Deductions: Discuss the importance of keeping accurate records of business expenses. Provide a link to HMRC’s guidance on allowable expenses.
  • Understanding Personal Allowances and Tax Bands: Offer insights into personal tax allowances and how they impact sole traders. Reference the latest tax band information.
  • Utilizing Tax-Free Allowances: Detail how sole traders can make the most of tax-free allowances, such as the Trading Allowance.

Section 3: Tax Strategies for Limited Companies in Dermatology


Conclusion:

Making the right tax choices is crucial for the financial health of your dermatology business. Whether operating as a sole trader or a limited company, staying informed and seeking professional advice is key. For personalized guidance tailored to your specific circumstances, consider consulting with a professional accountant specializing in dermatology businesses.


For more detailed advice and assistance with managing the tax affairs of your dermatology business, contact GM Professional Accountants. Our expertise in financial services for the UK healthcare sector can help streamline your tax processes and ensure compliance. Visit our Contact Page to get started.

Locum Doctor GP Limited Companies house: Filing Deadlines 2024 Effectively

Locum GP Limited Company: Key Companies House Filing Deadlines and Compliance Tips



Introduction

As a locum GP operating a limited company in the UK, staying abreast of Companies House filing deadlines is crucial for maintaining compliance and avoiding penalties. GM Professional Accountants specializes in guiding healthcare professionals through these intricate requirements.

Find out more

Understanding Companies House Filing for Locum GP Limited Companies

What is Companies House?
Companies House is the UK’s registrar of companies, responsible for handling company information and ensuring public availability.

Why Timely Filing is Crucial
Timely filing ensures legal compliance, maintains your company’s good standing, and avoids late penalties.

Be sure to subscribe to our Youtube Channel.
Subscribe Now

Key Deadlines to Remember

Annual Accounts Submission
Typically, your first accounts are due 21 months after the date you registered with Companies House. Subsequent filings are due annually, 9 months after your company’s financial year ends.

Confirmation Statement
This annual statement, due within 14 days after the anniversary of your company’s incorporation, confirms important details about your company.

Tips for Effective Filing

  1. Maintain Accurate Records: Keep detailed, up-to-date financial records.
  2. Understand Your Fiscal Year: Align filing deadlines with your company’s financial year.
  3. Seek Professional Assistance: Firms like GM Professional Accountants offer tailored support.

How GM Professional Accountants Can Help

Expertise in Healthcare Sector: Our experience with locum GPs ensures we understand your unique needs.
Personalized Services: From tax planning to payroll services, we provide comprehensive accounting solutions.
Proactive Reminders: We keep track of deadlines, so you don’t have to.

Conclusion

Navigating Companies House requirements is a critical part of managing a Locum GP Limited Company. By understanding these deadlines and seeking expert assistance from GM Professional Accountants, you can ensure compliance and focus on your primary role – providing healthcare services.


Call to Action: Contact GM Professional Accountants today to ensure your Locum GP Limited Company remains compliant and efficient.



These anchor texts are strategically placed to improve the blog’s SEO and direct readers to relevant pages on the GM Professional Accountants website for further engagement and information.

Accountant Guidance for Locum GP Doctors: Navigating Self-Assessment Registration and Filing 2024

How to Register and File Your Self-Assessment as a Locum GP Doctor in 2024

Navigating the tax landscape as a locum GP doctor in the UK can be a complex task. Registering for a Unique Taxpayer Reference (UTR) and understanding the self-assessment filing dates are critical steps in managing your financial responsibilities. This guide aims to simplify this process, focusing on key aspects of ‘GP doctor self-assessment’, ensuring that you stay compliant with HMRC requirements.

Find out more

Understanding the Need for a UTR

Before diving into the intricacies of self-assessment, it’s crucial to understand what a Unique Taxpayer Reference (UTR) is and why it’s essential for locum GP doctors. A UTR is a 10-digit number uniquely assigned to you by HMRC, which is necessary for filing your tax returns. As a locum GP, this identifier is your gateway to the self-assessment process.

Be sure to subscribe to our Youtube Channel.
Subscribe Now

How to Register for a UTR

  1. Online Registration: The most convenient way to register is online through the HMRC website. You’ll need to provide personal details and information about your locum GP work.
  2. Timeframe for Registration: It’s advisable to register as soon as you begin your locum work. HMRC may take up to 20 working days to send your UTR, so timely registration is essential.
  3. Documentation Required: Be prepared with your National Insurance number, personal details, and the date you started your locum GP practice.

Filing Your Self-Assessment Tax Return

Once you have your UTR, you’re ready to start the self-assessment process. This is where you declare your income and calculate your tax liability.

Key Dates for Self-Assessment

  1. 5th October: This is the deadline for registering for self-assessment for the previous tax year.
  2. 31st January: This is the final date for online self-assessment tax returns for the tax year ending the previous 5th April. It’s also the deadline to pay any tax you owe.

Steps for Filing Self-Assessment

  1. Gather Documentation: Compile all your financial records, including invoices, expenses, and bank statements related to your locum GP work.
  2. Calculating Your Tax: You may need to account for various types of income and deductions. It’s essential to include all relevant financial details to accurately calculate your tax liability.
  3. Online Submission: Submit your tax return online through the HMRC self-assessment portal using your UTR. Ensure that all information is accurate and complete to avoid any penalties.

Tips for Smooth Filing

  • Stay Organized: Keep your financial records well-organized throughout the year to ease the filing process.
  • Understand Deductible Expenses: As a locum GP, certain expenses related to your work may be tax-deductible. Understanding these can significantly affect your tax liability.

Conclusion

For locum GP doctors, understanding and managing self-assessment and UTR registration is crucial. By staying informed of key dates, maintaining organized records, and understanding your tax obligations, you can ensure a smooth and compliant tax filing process. Remember, staying on top of these details not only helps in managing your finances effectively but also in avoiding any unnecessary penalties.


If you need more personalized guidance or assistance with your self-assessment, our team at GM Professional Accountants is here to help. Specializing in financial services for the medical sector, we offer expert advice tailored to the unique needs of locum GP doctors. Contact us today to learn how we can support your financial journey.

Amazon seller compliance Determination of Establishment UK

Navigating VAT Compliance for UK and EU E-commerce: A Guide for Limited Companies and Partnerships

This guide aims to clarify the steps and documents necessary for limited companies and partnerships operating in this sector.

Find out more

Be sure to subscribe to our Youtube Channel.

Subscribe Now

What Documentation Should You Provide?

If you operate a limited company or partnership, the following documents are crucial:

1. Evidence of Business Operation**: Provide documents that prove your business is physically operating from the address you have provided. This could include utility bills, lease agreements, or bank statements showing business transactions at this address.

2. Verification of Directors or Partners**: Furnish documents that confirm the place of residence for every director or partner listed in the company registration extract. This could include recent utility bills, bank statements, or government-issued identification.

How to Submit the Required Information?

Simply reply directly to this email to provide the required documentation. This direct line of communication ensures a swift and secure exchange of sensitive information.

Processing Time and Next Steps

Once you have provided all necessary documentation, please allow up to 14 days for our review. We will inform you if any documents are missing or further clarification is needed. If the review is successful, your responsibility to remit VAT directly on B2C sales in the UK or EU will be reinstated.

If You Do Not Meet Business Establishment Requirements

Should your business not meet the establishment requirements in the EU or UK, promptly inform us by replying to this email with confirmation of the country from which your company operates. In such cases, no further documentation is required.

Consequences of Non-Compliance

It is important to note that failure to provide the requested documents can result in the inability to disburse funds using your selling account on Amazon. This highlights the importance of timely compliance with these requirements.

We’re Here to Help

Should you have any questions or need assistance, do not hesitate to contact us. Our team is dedicated to supporting you through this process and ensuring your business meets all necessary VAT compliance standards for e-commerce in the UK and EU.

This guide not only provides a clear pathway for your VAT compliance but also demonstrates our commitment at GM Professional Accountants to supporting your e-commerce business through intricate financial regulations. For more tailored advice and assistance, please contact us directly.

Dental Accountancy: Navigating the Companies House Deadline 2023-2024

Navigating the Companies House Deadline 2023-2024

Introduction

As the 2023-2024 Companies House deadline approaches, dental practices across the UK face the critical task of ensuring their financial affairs are in order. Specialized dentist accountants, such as GM Professional Accountants, are essential in helping dental practices navigate these complex requirements.

Find out more

Understanding the Companies House Deadline

The Companies House deadline is an annual obligation for all UK-based companies, including dental practices, to file their accounts and reports. For example, if your dental practice’s financial year ends on 31st March 2023, your accounts and reports must be filed with Companies House by 31st December 2023.

Be sure to subscribe to our Youtube Channel.

Subscribe Now

The Role of Dentist Accountants

Dentist accountants specialize in managing the financial aspects of dental practices. They provide tailored services such as financial reporting, tax planning, and payroll management, ensuring compliance with the Companies House deadlines.

Why Choose GM Professional Accountants?

GM Professional Accountants offers personalized services and expertise in the dental sector, helping practices stay ahead of regulatory changes and optimize their financial management.

Navigating Challenges and Seizing Opportunities

The 2023-2024 deadline brings challenges such as adapting to new tax regulations and leveraging technology for financial management. Dentist accountants turn these challenges into opportunities for growth and efficiency.

Conclusion

Meeting the Companies House deadline is crucial for the financial health of your dental practice. With specialized dentist accountants like GM Professional Accountants, dental practices can navigate these requirements smoothly and confidently.

External Resources


Understanding the VAT Threshold for Self-Employed Contractors: Navigating the £85,000 Limit

Understanding the VAT Threshold for Self-Employed

As a self-employed contractor, staying informed about the VAT (Value Added Tax) threshold is crucial for maintaining compliance and optimizing your financial strategy. In the UK, the current VAT threshold for self-employed contractors is set at £85,000. This article aims to guide you through the essentials of the VAT threshold, particularly if your earnings are near or exceed this limit.

Find out more

Be sure to subscribe to our Youtube Channel.

Subscribe Now

What is the VAT Threshold?

The VAT threshold is the annual amount of taxable turnover after which a self-employed contractor, or any business, must register for VAT. As of [insert year], this threshold is set at £85,000. It’s important to understand that ‘taxable turnover’ refers to the total of everything sold during a 12-month period that is not VAT exempt.

Why is the £85,000 Threshold Important?

Crossing the VAT threshold has significant implications for contractors. Once you pass this limit, you’re required to register for VAT with HM Revenue and Customs (HMRC). This involves charging VAT on the goods and services you provide, and also allows you to reclaim VAT on your business expenses.

Monitoring Your Earnings

It’s vital to monitor your earnings to determine if you’re approaching the £85,000 threshold. Failure to register for VAT when required can result in penalties. Tools and accounting services like those offered by GM Professional Accountants can be invaluable in keeping track of your financial activities.

Benefits of VAT Registration

Registering for VAT, even voluntarily before reaching the threshold, can have benefits:

  • Credibility: Being VAT registered can enhance your professional image, as clients often perceive VAT-registered businesses as being more established and reliable.
  • Tax Reclamation: You can reclaim VAT on goods and services purchased for your business.

How to Register for VAT

Registering for VAT can be done online through the HMRC website. It’s advisable to seek professional assistance from accounting experts, such as GM Professional Accountants, to ensure that the process is handled correctly and efficiently.

Staying Informed

Keeping up-to-date with changes in VAT legislation is essential. The HMRC website is a primary source for current information. Additionally, professional accountants can provide tailored advice and updates relevant to your situation.

Conclusion

Understanding and adhering to the VAT threshold is crucial for self-employed contractors in the UK. Staying informed, monitoring earnings, and seeking professional advice are key steps in managing your VAT obligations effectively. For expert guidance and services, consider reaching out to GM Professional Accountants, who specialize in assisting self-employed contractors with VAT and other accounting needs.

For more detailed information on VAT and the current threshold, visit the HMRC website.


UTR Numbers and Tax Returns: What You Need to Know 2024

UTR Numbers and Tax Returns: What You Need to Know 2024

Introduction:
As we step into 2024, understanding the nuances of tax regulations, including the role of Unique Taxpayer Reference (UTR) numbers in the UK, remains as crucial as ever. Whether you’re a seasoned business owner, a new entrepreneur, or a self-employed professional, this guide will help you navigate the intricacies of UTR numbers and their significance in your tax returns.

Find out more
Be sure to subscribe to our Youtube Channel.
Subscribe Now

What is a UTR Number?
A UTR number is a 10-digit code issued by HM Revenue and Customs (HMRC) unique to each tax-paying entity in the UK. This number is essential for filing your tax returns and is a critical component of your tax identity. Learn more about UTR numbers.

Who Needs a UTR Number?
Generally, if you’re self-employed, a partner in a business partnership, or running a limited company, you will need a UTR number. It’s also necessary for individuals who file Self Assessment tax returns. Check if you need a UTR number.

Applying for a UTR Number in 2024
The application process for a UTR number remains straightforward. You can apply online through the HMRC website. The process involves providing personal details and information about your business. Start your UTR application here.

Linking Your UTR Number with Tax Returns
Once you have your UTR number, it becomes integral to your tax returns. This number allows HMRC to process your tax details correctly. For the tax year 2023-2024, remember to use your UTR number when submitting your returns, which is typically due by January 31, 2025. Guide to filing tax returns.

Common Misconceptions and Errors
It’s easy to confuse UTR numbers with other tax identifiers or to misplace them. Remember, your UTR number is not the same as your National Insurance number or company registration number. Keep it secure and accessible for tax-related processes.

Changes to Tax Regulations in 2024
Stay updated with any changes in tax laws that might affect your tax filings. This year, there have been updates in specific tax regulations that could impact how you use your UTR number.

Conclusion:
Managing your UTR number effectively is vital for hassle-free tax returns. As tax laws and processes evolve, staying informed and prepared is key. For personalized advice or assistance with your UTR number and tax returns, don’t hesitate to contact GM Professional Accountants, your trusted financial experts.

Contact Us
Need help with your UTR number or tax returns? Contact GM Professional Accountants for expert assistance tailored to your needs.


Expert Commercial Property Accountants 2024: Navigating Real Estate Financial Challenges

Maximizing Your Commercial Property : Expert Insights from GM Professional Accountants

Introduction:
In the complex realm of commercial property investments, the expertise of a specialized Commercial Property Accountant is indispensable. At GM Professional Accountants, we understand this intricacy and are dedicated to guiding you through the financial landscape of your property investments.

Find out more

Be sure to subscribe to our Youtube Channel.

Subscribe Now

Understanding Commercial Property Accounting:
Commercial property accounting, a niche within the broader accounting discipline, is pivotal in managing the finances of business-related properties. Whether you’re an owner, investor, or manager in this sector, comprehending its nuances is key to your success.

Key Roles of a Commercial Property Accountant at GM Professional Accountants:

  1. Accurate Financial Reporting: Our accountants ensure meticulous tracking and reporting of your property’s financial activities.
  2. Tax Compliance and Optimization: We navigate complex tax regulations, ensuring you benefit from all available tax advantages.
  3. Budgeting and Forecasting: Our strategic financial planning aids in informed decision-making and investment management.

Why Choose GM Professional Accountants for Your Commercial Property Needs?:
Our accountants specialize in commercial properties, offering:

  • In-depth Industry Knowledge: We are well-versed in industry-specific regulations and trends.
  • Strategic Financial Advice: From purchase to sale, our guidance is designed to maximize your returns.
  • Risk Management Expertise: We identify and mitigate financial risks, protecting your investments.

Leveraging Technology in Commercial Property Accounting:


At GM Professional Accountants, we utilize state-of-the-art accounting software for efficient management, real-time reporting, and comprehensive analytics, enhancing your financial decision-making process.

Conclusion:
Choosing GM Professional Accountants for your commercial property accounting needs goes beyond fulfilling compliance requirements; it’s a strategic decision for profitability and growth. Our specialized knowledge in this sector positions us to be your ideal financial partner.

Maximize your commercial property ? Contact GM Professional Accountants today for bespoke accounting solutions that promise compliance and profitability.


2024 Guide: How Long to Get a Stamp Duty Refund on Uninhabitable Property

2024 Comprehensive Guide: Stamp Duty Refund Timeline for Uninhabitable Properties

What Makes a Property Uninhabitable in the UK? Understanding the distinction between a property that is simply dated or needs minor repairs and one that is genuinely uninhabitable is crucial for stamp duty considerations. The term ‘uninhabitable’ goes beyond the need for a fresh coat of paint or basic renovations. These factors don’t exempt you from paying the standard stamp duty land tax as the property is still considered liveable.

Find out more

Be sure to subscribe to our Youtube Channel.

Subscribe Now

Key Indicators of an Uninhabitable Property: GM Professional Accountants, with their deep understanding of HMRC’s rules, outline key factors that typically render a property uninhabitable:

  1. Presence of Asbestos: Asbestos in the building structure poses serious health risks, making the property unsafe for living.
  2. Non-Standard Roofs: Roofs that fail to provide adequate shelter or are structurally unsound qualify a property as uninhabitable.
  3. Lack of Running Water: A fundamental requirement for any habitable property, its absence is a clear indicator of uninhabitability.
  4. Severe Damp or Mould: These issues, especially when posing health risks, can render a property unfit for living.
  5. Inadequate Weatherproofing: Properties that cannot withstand normal weather conditions, like being windproof, are considered uninhabitable.
  6. Non-Compliance with Building Regulations: This includes essential safety features like suitable railings for stairs.
  7. Presence of Lead: Found in water pipes or paints, lead can make a property unsafe for occupancy.

Stamp Duty Implications for Uninhabitable Properties: When purchasing a second property, a standard additional 3% stamp duty surcharge is applicable. However, if the property is uninhabitable, exemptions might apply. HMRC distinguishes between a property that is derelict and one requiring repairs. An uninhabitable property, as defined earlier, is not fit for everyday living due to significant deficiencies.

Therefore, you are not liable to pay stamp duty on a property deemed uninhabitable. If a property lacks basic amenities like heating or water, or requires hazardous material removal, it’s not considered suitable for residential purposes. In such cases, the higher stamp duty rates do not apply, beyond the 3% surcharge for second homes.

Expert Guidance from GM Professional Accountants: Navigating the complexities of stamp duty on uninhabitable properties requires professional insight. GM Professional Accountants offer expert advice and services to ensure you understand your obligations and entitlements under the law. We can help you determine whether a property is uninhabitable under HMRC’s criteria and guide you through the process of claiming any applicable stamp duty refunds.

Conclusion: Distinguishing between a property that needs minor repairs and one that is truly uninhabitable is key to understanding your stamp duty liabilities. With the expertise of GM Professional Accountants, you can confidently navigate these waters, ensuring compliance and maximizing your financial benefits.

Contact GM Professional Accountants today for comprehensive assistance with your property tax needs, including understanding and applying for stamp duty refunds on uninhabitable properties. Let our expertise be your guide in making informed property investment decisions.

Buy-to-Let Bookkeeping: A Comprehensive Guide for Landlords – Xero vs. QuickBooks

Navigating Buy-to-Let Bookkeeping: A Comprehensive Guide for Landlords – Xero vs. QuickBooks

Introduction:

As a landlord in the dynamic buy-to-let sector, managing your financials efficiently is pivotal for success. In this age of digital accounting, tools like Xero and QuickBooks have revolutionized bookkeeping. At GM Professional Accountants, we understand the unique challenges you face in the buy-to-let market. This guide offers an in-depth comparison of Xero and QuickBooks, helping you choose the right software for your buy-to-let bookkeeping needs.

The Importance of Efficient Bookkeeping for Landlords:

In the buy-to-let industry, effective bookkeeping isn’t just about compliance – it’s a cornerstone of financial health. Tracking income, expenses, and understanding your cash flow are vital for making informed decisions. Proper accounting practices also ensure you’re capitalizing on tax efficiencies and avoiding costly mistakes.

Xero for Buy-to-Let Bookkeeping: Xero, renowned for its user-friendly interface, offers a suite of features tailored for landlords. Key benefits include:

  • Real-time Financial Tracking: Monitor your rental income and property expenses effortlessly.
  • Automated Bank Feeds: Sync your bank transactions directly with Xero for streamlined bookkeeping.
  • Efficient Tax Management: Xero simplifies tax submissions, including capital gains considerations for landlords.
  • Mobile Accessibility: Manage your accounts on-the-go, a crucial feature for busy landlords.

QuickBooks for Buy-to-Let Bookkeeping: QuickBooks, another popular choice, stands out with its robust functionalities:

  • Detailed Expense Tracking: Categorize property expenses with ease, enhancing budget management.
  • Customizable Reporting: Generate comprehensive financial reports tailored to your property portfolio.
  • Intuitive Dashboard: Get a quick overview of your financial health at a glance.
  • Advanced Integration: Seamlessly integrate with other financial tools and services used by landlords.

Xero vs. QuickBooks – Making the Right Choice: Both Xero and QuickBooks offer compelling features, but your choice depends on specific needs:

  • Ease of Use: If you prefer a more straightforward, user-friendly interface, Xero might be your go-to.
  • Advanced Features: For landlords seeking deeper financial insights and customizations, QuickBooks could be more suitable.
  • Pricing: Compare the pricing plans of both software to align with your budget.

GM Professional Accountants:

Your Partner in Buy-to-Let Success: Choosing the right software is just the beginning. At GM Professional Accountants, we specialize in assisting landlords in the buy-to-let sector. Our expertise in utilizing tools like Xero and QuickBooks ensures your bookkeeping is efficient, compliant, and optimized for your financial success.

Register Your Buy-to-Let Business as a Limited Company with Companies House 2024

Navigating Buy-to-Let: Registering Your Business as a Limited Company with Companies House

Introduction: The realm of buy-to-let investments in the UK has seen a significant evolution, with many investors considering the move to incorporate their rental business. Registering your buy-to-let business as a limited company with Companies House has become a focal point of discussion. This blog post delves into the key aspects of this process, its benefits, and the considerations you need to make as a property investor.

Find out more

Understanding the Basics: Buy-to-Let as a Limited Company Before diving into the registration process, it’s crucial to understand what it means to run your buy-to-let business as a limited company. This structure separates your personal assets from your business operations, providing financial security and a distinct legal entity for your property investments.

Benefits of Registering with Companies House

  • Tax Efficiency: Operating as a limited company can offer tax advantages, particularly with recent changes to mortgage interest tax relief for individual landlords.
  • Professional Image: A limited company structure can enhance your business’s credibility, making it more appealing to potential tenants and partners.
  • Limited Liability: This structure limits your personal financial risk, as your liability is restricted to the amount you’ve invested in the company.

The Registration Process

  1. Choosing a Company Name: Select a unique name that reflects your business ethos, ensuring it adheres to Companies House guidelines.
  2. Preparing Documentation: This includes the Memorandum of Association and Articles of Association, outlining your company’s constitution and operating rules.
  3. Filling Out the IN01 Form: This form provides essential information about your company, including the address, director details, and share capital.
  4. Submitting the Application: You can register online or via post, with online registration typically being faster and more convenient.

Key Considerations Post-Registration

  • Accounting and Reporting: As a limited company, you’ll need to maintain accurate financial records and submit annual accounts and tax returns.
  • Mortgage Considerations: Switching to a limited company may affect your mortgage options, so it’s vital to seek advice from a mortgage advisor familiar with buy-to-let investments.
  • Ongoing Compliance: Familiarize yourself with the ongoing legal and tax obligations, including filing confirmation statements and staying updated on landlord regulations.

Conclusion Registering your buy-to-let business as a limited company with Companies House can offer numerous benefits, but it requires careful consideration and planning. As professional accountants specializing in the financial services market, GM Professional Accountants can provide expert guidance and support throughout this process. Whether it’s managing tax efficiency or ensuring compliance with legal obligations, our team is here to help you make the most of your investment journey.

 

Expert Bookkeeping and Xero Tips for Efficient Rental Property Management for Landlords

Mastering Rental Property Finances: Expert Bookkeeping and Xero Tips for Landlords

Introduction: Managing a rental property requires meticulous financial oversight to ensure profitability and compliance. Many landlords face challenges in this area due to inadequate systems for tracking finances and budgets. Property management software like Landlord Studio, and accounting packages such as Xero, have emerged as vital tools in simplifying these tasks. In this article, we delve into the advantages and limitations of using Xero for rental property accounting and how to set it up effectively.

Find out more

The Appeal of Xero for Property Investors: Xero has gained popularity among accountants and property investors for several reasons:

  • Easy bank feed connections for income and expense tracking.
  • Automated rent invoicing to minimize late payments.
  • Cloud-based software allowing remote access.
  • Multi-user accessibility for team collaboration.
  • Comprehensive reporting capabilities.
  • Clear dashboard with financial overviews, including rent status and cash flow.
  • Reliable customer service.

However, as a landlord, it’s important to recognize that while Xero offers robust accounting features, it may lack certain property management-specific functions that platforms like Landlord Studio provide, including tenant screening and contact management.

Setting Up Xero for Rental Property Accounting: Getting started with Xero can initially seem daunting, but it becomes a powerful tool for streamlining your accounting with familiarity. Here’s a quick guide to setting up Xero for your rental properties:

  1. Create an account and log in.
  2. Navigate to the Accounting menu and select Advanced.
  3. Click on Tracking categories and name your category (e.g., Rentals or Properties).
  4. Save your categories and start reconciling transactions for each property.
  5. Use Xero Bills for recording property-related expenses and match them with bank payments.
  6. Utilize Xero’s customizable reporting features for detailed financial insights.

The Limitations of Xero in Rental Property Accounting: While Xero excels in accounting, it is primarily designed for general business use, not specifically for real estate. Key limitations include:

  • Absence of full property management functionalities like tenant screening and document storage.
  • Reporting tools not tailored for property investment needs.
  • Manual contact imports.
  • Inability to track multi-unit properties effectively.

Xero vs QuickBooks for Rental Properties: When considering accounting software for rental properties, QuickBooks is another prominent option. Both Xero and QuickBooks offer extensive features suitable for small business accounting, but they have different approaches and strengths. Xero’s user-friendly design and competitive pricing, along with extensive app integrations, make it a strong contender. QuickBooks, however, has long been a staple in the U.S. accounting industry. Your choice might depend on your familiarity with either platform and specific accounting needs.

Property Management Software vs. Xero: Landlord Studio, designed specifically for landlords, offers tailored solutions for rental property management. It provides efficient tracking of income and expenses, ensuring a comprehensive financial overview of your property portfolio. While Xero and QuickBooks are excellent for general accounting, industry-specific tools like Landlord Studio can offer additional functionalities more aligned with the needs of landlords.

Conclusion: Choosing the right tool for managing rental property finances is crucial for landlords. Xero offers a robust accounting solution, but it’s important to be aware of its limitations and consider complementing it with property management software for a more holistic approach. Carefully assess your specific needs and preferences to decide whether Xero, QuickBooks, or a specialized tool like Landlord Studio is the best fit for your property management strategy. Remember, the goal is to streamline your processes, enhance efficiency, and ensure the profitability of your rental property investments.

Strategies for Property Portfolio Growth for Limited Companies 2024

Property Portfolio Growth for Limited Companies – Insights from GM Professional Accountants”


Introduction

As specialists in the field, GM Professional Accountants understand the complexities and opportunities in growing a property portfolio for limited companies. In this blog, we delve into effective strategies that can help your business expand its real estate investments, leveraging our expertise to guide you through the nuanced landscape of property investment.

Find out more

Understanding the Market Dynamics

Before diving into expansion, it’s crucial to have a firm grasp of the current real estate market trends. Limited companies should conduct thorough market analysis to identify potential growth areas and investment opportunities. It’s not just about the location, but also understanding the types of properties that are in demand, potential rental yields, and long-term appreciation prospects.

Diversification of Your Property Portfolio

One key strategy for growth is diversification. This doesn’t just mean buying different types of properties but also considering various geographical locations. Diversification can reduce risk and provide a buffer against market fluctuations. For limited companies, this approach can stabilize income streams and enhance the overall value of the portfolio.

Leveraging Financial Leverage Wisely

Utilizing financial leverage – borrowing to invest – can be a powerful tool for portfolio growth. However, it’s essential to do so wisely. Limited companies need to assess their debt capacity and ensure that the investment returns justify the borrowing costs. GM Professional Accountants can provide expert advice on structuring debt in a way that aligns with your company’s financial health and investment goals.

Tax Efficiency in Portfolio Expansion

Tax considerations are paramount in property investment. Understanding and utilizing the various tax reliefs and allowances available can significantly impact the profitability of your investments. As a property accountant specialist, GM Professional Accountants can offer tailored advice to ensure that your portfolio expansion is not only profitable but also tax-efficient.

Regular Portfolio Review and Adjustment

The property market is dynamic, and what works today may not be as effective tomorrow. Regularly reviewing and adjusting your property portfolio is essential. This might mean selling underperforming properties or reinvesting in more lucrative opportunities. GM Professional Accountants can provide ongoing support and advice, helping you make informed decisions based on the latest market data and financial analysis.

Conclusion

Growing a property portfolio for a limited company requires a strategic approach, balancing risk with opportunity. By understanding the market, diversifying investments, leveraging finance wisely, optimizing for tax efficiency, and regularly reviewing your portfolio, you can significantly enhance your company’s real estate holdings. At GM Professional Accountants, our expertise in property accounting for limited companies positions us as your ideal partner in this journey. Contact us today to explore how we can support your property investment goals.

Accountants’ Insight: Changes in Property Laws – Adapting Strategies for Ilford Landlords in 2024

Changes in Property tax: How Ilford Landlords Need to Adapt in 2024

Introduction: The year 2024 marks a pivotal moment for landlords in Ilford, with substantial changes in property laws reshaping the landscape. These developments necessitate a strategic approach to ensure compliance and to capitalize on new opportunities. As expert property tax accountants in Ilford, GM Professional Accountants is dedicated to guiding landlords through these changes, particularly focusing on mortgage interest restrictions and the advantages of forming limited companies.

Find out more

 

1. Understanding the New Property Law Changes: The onset of 2024 has introduced crucial amendments in property laws affecting landlords in Ilford. These range from revised rental standards and tenant rights to significant alterations in property taxation. Grasping the details of these changes is essential for legal compliance and to maximize your property investment potential.

 

2. Navigating the Impact on Property Taxes and Mortgage Interest Restrictions: A notable change is the further tightening of mortgage interest restrictions. This year, landlords face a more complex scenario in claiming mortgage interest as a tax deduction. Understanding these nuances is vital to effectively manage your finances and avoid potential tax liabilities. Additionally, with these tax changes, more landlords are considering the formation of limited companies for their property portfolios. This move can offer tax efficiencies and a different financial structure, but it also comes with its own set of regulatory requirements.

3. Adapting Rental Strategies Amidst Legal Shifts: The transformation in tenant rights and rental agreement laws requires landlords to review and adjust their rental strategies. Updating tenant screening procedures, lease agreements, and rent structures is critical for compliance and to maintain the profitability of your rentals.

4. Complying with Enhanced Energy Efficiency Standards: 2024 brings stricter energy efficiency regulations. Landlords will need to invest in property upgrades to meet these standards, which, though initially costly, promise long-term benefits like increased property value, enhanced rental appeal, and potential tax breaks.

5. Leveraging Expertise in Property Tax and Company Formation: In this evolving landscape, professional guidance is indispensable. Our role as property tax accountants in Ilford extends to advising on the intricacies of mortgage interest restrictions and the strategic formation of limited companies. We provide tailored solutions, ensuring that your property investments are both compliant and financially sound.

Conclusion: For landlords in Ilford, adapting to the 2024 property law changes is crucial. At GM Professional Accountants, we specialize in assisting you through these legal shifts, with a focus on the latest in mortgage interest restrictions and the benefits of forming limited companies. Our expertise ensures that your property investments remain compliant, profitable, and well-positioned for the future.

Reach out to us today to expertly navigate the changing property laws of 2024. Let’s optimize your property investment strategy in these evolving times.

Xero Compliance Health Check: A Guide by GM Professional Accountants

Navigating Xero Compliance Health Check: A Guide by GM Professional Accountants

Introduction: In today’s rapidly evolving financial landscape, ensuring compliance and accuracy in accounting practices is more critical than ever. For businesses using Xero, a comprehensive compliance health check is essential to maintain the integrity of financial records. GM Professional Accountants, specialists in providing top-tier accounting services, delves into the importance of a thorough Xero compliance health check, focusing on key areas such as nominal accounts and bank reconciliation.

Find out more

1. Understanding the Importance of Xero Compliance Health Check: A compliance health check in Xero is akin to a regular health check-up for your finances. It involves examining various aspects of your financial records to ensure they align with current regulations and best practices. This process is crucial for businesses to avoid potential penalties and to make informed financial decisions.

2. Nominal Accounts: The Backbone of Your Financial Records: Nominal accounts are at the heart of your financial reporting. They provide a detailed record of all your transactions, categorized into assets, liabilities, equity, expenses, and income. A Xero compliance health check involves scrutinizing these accounts to ensure accuracy and consistency. GM Professional Accountants emphasizes the need for regular reviews of nominal accounts to detect discrepancies early and prevent financial misreporting.

3. The Critical Role of Bank Reconciliation: Bank reconciliation is a vital part of maintaining accurate financial records. It involves matching the transactions in your accounting software with those on your bank statement. This process not only ensures accuracy but also helps in identifying fraud or errors. Xero’s bank reconciliation feature is user-friendly, but having an expert eye from a firm like GM Professional Accountants can provide an added layer of assurance.

4. How GM Professional Accountants Can Assist: At GM Professional Accountants, we understand the nuances of Xero and how to leverage its features for maximum compliance and efficiency. Our team of experts offers services ranging from setting up nominal accounts correctly to conducting thorough bank reconciliations. We ensure that your financial records are not just compliant but also optimized for your business’s success.

5. Benefits of Regular Xero Compliance Checks: Regular compliance checks can save businesses from costly errors and the hassle of dealing with compliance issues. They ensure that the financial data you rely on for making business decisions is accurate and up-to-date. With GM Professional Accountants, you gain peace of mind knowing that your financial health is regularly monitored and maintained.

Conclusion: A Xero compliance health check is a non-negotiable aspect of modern accounting practices. With the expertise of GM Professional Accountants, businesses can navigate through this process seamlessly, ensuring that their financial records are accurate, compliant, and a true asset for their business growth. Reach out to our team for a consultation and take the first step towards financial robustness today.

Avoiding Common Mistakes in Real Estate Accounting: Lessons for Estate Agents

Avoiding Common Mistakes in Real Estate Accounting: Lessons for Estate Agents

Introduction

 

Navigating the intricacies of real estate accounting can be challenging, especially in a bustling market like London. At GM Professional Accountants, we understand the unique financial hurdles faced by estate agents. This blog post delves into the common mistakes in real estate accounting and offers valuable lessons to ensure accuracy and efficiency in your financial practices.

Common Mistake #1: Inaccurate Expense Tracking

 

One of the most frequent errors in real estate accounting is the mishandling of expense tracking. Estate agents often juggle various expenses, from property marketing costs to travel expenditures. Precision in recording these expenses is crucial for accurate financial reporting and tax calculations.

 

Lesson: Implement a robust accounting system that categorizes and tracks expenses meticulously. Leveraging digital tools can automate this process, reducing the risk of human error.

 

Common Mistake #2: Ignoring Client Account Reconciliation

 

Client account reconciliation is pivotal in real estate accounting. However, some estate agents in London overlook this vital process. This negligence can lead to discrepancies in financial statements, affecting credibility and compliance.

 

Lesson: Regularly reconcile client accounts to ensure all transactions are accurately recorded. This not only maintains financial integrity but also builds trust with your clients.

 

Common Mistake #3: Misunderstanding Tax Obligations

 

Tax laws can be complex, and misunderstandings can result in costly errors. Estate agents need to be well-versed in applicable tax regulations, including VAT, capital gains tax, and stamp duty.

 

Lesson: Stay informed about the latest tax laws and regulations. Consider partnering with expert accountants for estate agents in London, like GM Professional Accountants, to navigate tax intricacies effectively.

 

Common Mistake #4: Poor Cash Flow Management

 

Effective cash flow management is the lifeblood of any estate agency. Poor management can lead to financial strain, affecting business operations and growth.

 

Lesson: Develop a cash flow management strategy that includes regular monitoring, forecasting, and contingency planning for unexpected scenarios.

 

Common Mistake #5: Not Seeking Professional Help

 

Many estate agents try to manage their accounting needs internally, often leading to overlooked details and compliance issues.

 

Lesson: Enlisting the help of professional accountants, specifically those experienced in real estate, can be a game-changer. GM Professional Accountants specializes in providing tailored accounting services for estate agents in London, ensuring your financial management is in expert hands.

 

Conclusion

 

Avoiding these common mistakes in real estate accounting requires diligence, knowledge, and the right support. At GM Professional Accountants, we offer specialized accounting solutions for estate agents in London, ensuring your financial operations are seamless and compliant. Contact us today to learn how we can help your estate agency thrive.

Accountants review bookkeeping in Quickbooks for Yearend companies house

A Comprehensive Review of Preparing Accounts on QuickBooks to finalize Companies House Accounts

 

Introduction In the ever-evolving realm of financial management, the significance of cutting-edge accounting software is paramount. QuickBooks stands out as a leader in cloud-based accounting solutions, known for its efficiency in streamlining business financial tasks. This blog post aims to explore how QuickBooks revolutionizes account preparation, a crucial process for businesses, especially in the UK financial services sector. We will examine the advantages of QuickBooks, highlighting its continuous evolution through regular updates.

Find out more

 

GM Professional Accountants specialize in using QuickBooks for year-end accounts reviews, ensuring accuracy and compliance. They expertly handle filing with Companies House and HMRC, streamlining your tax return and accounts process

Understanding QuickBooks QuickBooks, a prominent cloud-based accounting software, caters to the needs of small to medium-sized businesses. It is renowned for its user-friendly interface and comprehensive functionalities, providing users with the ability to access financial data anytime and anywhere. This accessibility enhances flexibility and promotes timely decision-making.

  1. Time Tracking and Expense Management: QuickBooks accurately tracks employee time for specific projects or tasks and categorizes expenses. This integration simplifies payroll processes and provides insights into organizational spending​​.
  2. Financial Reporting and Statements: It generates critical financial statements such as Profit and Loss reports, Balance Sheets, and Statements of Cash Flows, aiding in financial performance assessment, understanding company’s financial health, and cash flow management​​.
  3. Desktop vs. Online Versions: QuickBooks offers both desktop and online versions, each with unique benefits. The desktop version provides offline access, data control, and is suited for complex accounting needs, while the online version offers remote access, real-time collaboration, and automatic data backups​​.
  4. Ease of Use: Designed to be intuitive, QuickBooks is user-friendly for business owners without a background in accounting or finance​​.
  5. Integration with Other Programs: QuickBooks integrates with other applications like tax preparation programs and Microsoft Excel, simplifying data import and usage​​.
  6. Customization of Documents: It allows customization of documents such as invoices and spreadsheets, making them stand out with a professional appearance​​.
  7. Automated Check Signing: For businesses issuing numerous checks, QuickBooks facilitates automated check signing, saving time and reducing manual effort​​.
  8. Automatic Transaction Uploads: Certain transactions automatically load into QuickBooks, reducing manual data entry and ensuring accuracy​​.
  9. Electronic Payments and Mobility: The system allows for the receipt of electronic payments and provides mobile apps for on-the-go financial management​​.
  10. Inventory Tracking and Software Upgrades: It offers inventory tracking capabilities and automatically handles software upgrades, ensuring the latest features without manual intervention​​.
  11. Simplified Financial Statement Preparation: QuickBooks aids in preparing financial statements efficiently, assuming accurate data entry. It supports different accounting methods like accrual and cash accounting​​​​.
  12. Customizable Experience for Various Business Types: QuickBooks can be tailored to different business types, such as new businesses, professional services, product sellers, or non-profits, with plan options like Simple Start, Essentials, and Plus​​.
  13. Information Dissemination to Key Stakeholders: It provides essential financial information to various stakeholders like management, creditors, investors, and suppliers, in adherence to accounting standards like GAAP and IFRS​

 

In addition to the extensive benefits offered by QuickBooks, GM Professional Accountants further elevates the accounting experience for businesses. Specializing in year-end accounts review using QuickBooks, GM Professional Accountants provide expert assistance in finalizing and reviewing financial statements. They offer a comprehensive service that includes filing accounts with Companies House and handling HMRC accounts and tax returns. This integration of QuickBooks’ advanced features with the professional expertise of GM Professional Accountants ensures that businesses not only have accurate and up-to-date financial records but also remain compliant with UK financial regulations. Their tailored approach ensures that each business receives focused attention, making the year-end process efficient and seamless.”

Bookkeeping for consultants using Xero and Freeagent in 2024

Bookkeeping for Consultants: Mastering Xero and FreeAgent in 2024

Introduction: In the fast-evolving world of consultancy, managing finances effectively is crucial for success. As we step into 2024, consultants across various sectors are increasingly turning to sophisticated bookkeeping solutions like Xero and FreeAgent. This comprehensive guide delves into the benefits and strategies of utilizing these platforms for bookkeeping for consultants, ensuring your financial management is as efficient and streamlined as your consulting services.

Find out more

Understanding the Need for Specialized Bookkeeping in Consultancy Bookkeeping for consultants isn’t just about tracking income and expenses; it’s about understanding the unique financial landscape of consultancy services. With varied income streams, project-based work, and fluctuating expenses, consultants require a bookkeeping approach that’s both flexible and robust.

Why Choose Xero and FreeAgent for Your Consultancy? Xero and FreeAgent have emerged as leading bookkeeping solutions for consultants, offering a range of features tailored to the needs of modern consulting businesses. Their cloud-based platforms provide real-time financial data, insightful reporting, and seamless integration with other business tools, making them ideal for the dynamic consultancy environment.

Key Features of Xero and FreeAgent Beneficial for Consultants Dive into the specific features of Xero and FreeAgent that make them stand out for consultancy bookkeeping:

  • Automated Bank Feeds: Both platforms offer automated bank feeds, ensuring your financial data is always up-to-date and accurate.
  • Customizable Invoicing: Create professional, branded invoices that can be easily customized to reflect the unique services you offer as a consultant.
  • Expense Tracking: Efficiently track and categorize expenses, a vital feature for consultants who often incur varied costs.
  • Project Management and Time Tracking: Track time spent on specific projects, allowing for precise billing and financial management.
  • Real-time Financial Reporting: Gain insights into your financial performance with real-time reporting features.

Streamlining Your Bookkeeping Workflow with Xero and FreeAgent Learn how to integrate Xero and FreeAgent into your daily workflow effectively. This section covers tips on setting up your account, categorizing transactions, and utilizing their dashboards for a comprehensive view of your financial health.

Navigating the Challenges of Bookkeeping for Consultants Address common challenges faced by consultants in bookkeeping, such as irregular income patterns and project-based billing

As we navigate the complexities of bookkeeping for consultants using Xero and FreeAgent, it’s crucial to understand the importance of year-end financial reviews and compliance with regulatory requirements. This is where GM Professional Accountants steps in as your indispensable partner.

  • Expert Year-End Reviews: At GM Professional Accountants, we specialize in conducting thorough year-end reviews for consultants utilizing Xero and FreeAgent. Our expert team ensures that your financial records are accurate, complete, and in line with the latest accounting standards and principles. This meticulous process not only prepares your business for the end of the fiscal year but also provides valuable insights for strategic planning and decision-making.
  • Seamless Filing with Companies House and HMRC: Filing your accounts at Companies House and handling corporation tax obligations to HMRC can be daunting tasks. GM Professional Accountants offers seamless assistance in this critical area. Leveraging our deep understanding of Xero and FreeAgent, we ensure that all your financial reports are compliant and filed accurately and on time. This service alleviates the burden of regulatory compliance, allowing you to focus on your consultancy business without worrying about missing important deadlines or encountering compliance issues.
  • Personalized Assistance for Consultants: Understanding that each consultancy is unique, we offer personalized assistance tailored to your specific business needs. Whether it’s providing strategic advice on tax efficiency, helping with financial forecasting, or offering guidance on optimizing your use of Xero and FreeAgent, our team is dedicated to supporting the growth and success of your consultancy.

Conclusion: Navigating the world of bookkeeping for consultants in 2024 demands not only the right tools, such as Xero and FreeAgent, but also the support of experienced accountants who understand your unique needs. GM Professional Accountants stands ready to offer that expertise, ensuring your financial management is as efficient and effective as your consulting services. Reach out to us today to learn more about how we can help streamline your financial processes and ensure compliance, so you can continue to thrive in the dynamic consulting landscape.

Accountants review bookkeeping in Xero for Yearend companies house

 A Comprehensive Review of Preparing Accounts on Xero to finalise companies house accounts

Introduction

In the dynamic landscape of financial management, the role of innovative accounting software is undeniable. Xero, as a front-runner in cloud-based accounting solutions, stands out for its ability to streamline business financial tasks. This blog post is dedicated to exploring how Xero revolutionizes account preparation, a pivotal aspect for businesses, particularly in the UK financial services sector. We will delve into the advantages of Xero, emphasizing its evolving nature through regular updates.

Find out more

 

 

Understanding Xero

Xero, a cloud-based accounting software, is tailored for small to medium-sized businesses. It’s distinguished by its user-friendly interface and robust functionalities, allowing users to access financial data anytime and anywhere, thus promoting flexibility and timely decision-making.

The Pros of Using Xero for Account Preparation

  1. Real-Time Financial Reporting: Xero ensures that your financial information is always up-to-date, which is essential for informed decision-making.
  2. Automated Bank Feeds: The software automates bank transaction imports, reducing manual entry and the likelihood of errors.
  3. User-Friendly Interface: Xero’s intuitive design is accessible, even for those with limited accounting knowledge, making account preparation straightforward.
  4. Collaborative Platform: Multiple users can work on the platform simultaneously, fostering effective teamwork.
  5. Seamless Integration: Xero’s compatibility with a range of third-party apps expands its functionality, covering areas like payroll and inventory management.
  6. Adaptability with Quarterly Updates: Xero’s commitment to regular updates every quarter ensures that the platform continuously evolves, adapting to new accounting trends, regulatory requirements, and user feedback. This adaptability means users are always equipped with the latest tools and features for efficient and compliant account management.

Real-World Impacts for Clients

  1. Efficiency and Time-Saving: The automated and intuitive features of Xero save significant time in account preparation, enabling more focus on strategic financial planning.
  2. Accuracy and Compliance: With Xero, adherence to the latest tax laws and financial regulations is streamlined, a critical factor for UK businesses.
  3. Enhanced Decision-Making: The real-time data sharing and collaborative features of Xero enable informed and proactive financial decisions.
  4. Scalability: Xero grows with your business, handling increasing financial complexity with ease.

 

Xero in Action: Case Studies

To illustrate Xero’s impact, we can examine case studies of UK-based SMEs who have seen major improvements in their account preparation processes. These stories showcase the efficiency, error reduction, and enhanced financial insights afforded by Xero.

Conclusion

Conclusion

In conclusion, preparing accounts on Xero offers a multitude of advantages for both accountants and their clients in the financial services sector. Its combination of ease of use, comprehensive features, and collaborative nature makes it a valuable tool in the accountant’s arsenal. By leveraging Xero, GM Professional Accountants can enhance their service offerings, providing clients with efficient, accurate, and insightful yearend accounts.

 

HMRC Guidelines for Amazon Sellers in 2024

Navigating HMRC Guidelines for Amazon Sellers in 2024: Essential Tax Insights

In the ever-evolving landscape of online retail, Amazon sellers in the UK face unique challenges in 2024, particularly regarding compliance with HM Revenue and Customs (HMRC) regulations. This blog post aims to clarify these complexities, focusing on tax obligations and how to manage them effectively, while aligning with GM Professional Accountants’ expertise in financial services.

Find out more

Understanding the Key Tax Changes in 2024

The HMRC guidelines for 2024 have introduced changes that every Amazon seller should be aware of:

  1. VAT Obligations: Post-Brexit, VAT regulations for e-commerce have undergone significant revisions. Understanding these is critical, especially for cross-border transactions within the EU.
  2. Enhanced Reporting Standards: HMRC now requires more detailed reporting from e-commerce platforms. As an Amazon seller, it’s essential to ensure your sales data and tax records are accurately maintained.

Strategies for Compliance and Efficiency

  1. Embrace Automation: Utilizing accounting software that can seamlessly integrate with Amazon’s systems is a game-changer. It simplifies VAT calculations, sales tracking, and tax return preparation.
  2. Stay Up-to-Date: Tax legislation is dynamic. Regular updates from HMRC, tax newsletters, and collaboration with a specialized accountant are vital for staying informed.
  3. Rigorous Record Keeping: Diligent record-keeping is not just for compliance; it’s a tool for business insight and audit preparedness.

Maximizing Benefits Through Tax and Payroll Services

Effective tax planning can significantly benefit your Amazon business. Consider these aspects:

  • Expert Tax Returns: Leveraging tax return services from firms like GM Professional Accountants can provide deeper insights into your business’s financial health, identifying areas for growth and tax-saving opportunities.
  • Efficient Payroll Management: For sellers with employees, proper payroll management is essential. It assures compliance with HMRC’s PAYE system and can increase overall operational efficiency.

Building a Robust Amazon Business

Beyond compliance, here’s how you can thrive:

  1. Informed Pricing Strategies: Include all taxes and fees in your pricing model. Balance competitiveness with profitability.
  2. Market Analysis: Continuously assess market trends and adjust your business strategies accordingly.
  3. Seek Professional Guidance: Accountants specializing in e-commerce, like those at GM Professional Accountants, can provide invaluable advice on tax complexities and business growth strategies.

Conclusion

As an Amazon seller in 2024, understanding and adhering to HMRC guidelines is crucial for your business’s success and growth. Implementing efficient tax practices, staying informed, and seeking expert advice can not only ensure compliance but also pave the way for a profitable business journey.

Basic Inheritance Tax Review Package tax planning 2024 financial legacy

Discover how GM Professional Accountants’ Basic Inheritance Tax Review Package simplifies your tax planning and secures your financial legacy.


Introduction: Navigating inheritance tax can be daunting. At GM Professional Accountants, we understand this and have developed our Basic Inheritance Tax Review Package. Designed for clarity and simplicity, it’s the perfect starting point for anyone beginning to plan their estate or seeking to understand their potential liabilities.

Find out more

What is Inheritance Tax? In the UK, inheritance tax is charged on the estate (property, money, and possessions) of someone who has passed away. Understanding the exemptions and reliefs can be challenging, and professional guidance is often essential.

Why Consider GM Professional Accountants’ Basic Inheritance Tax Review?

  1. Clarity and Understanding: Our package demystifies inheritance tax, giving you a clear understanding of your liabilities and how they might affect your estate.
  2. Expertise and Experience: GM Professional Accountants brings years of expertise in dealing with inheritance tax. We ensure you receive knowledgeable guidance tailored to your situation.
  3. Future Planning: This review is a crucial step in future-proofing your estate planning, ensuring that your legacy is managed as you wish.

What Does the Package Include?

  1. Initial Consultation: Our experts will discuss your current financial situation to understand the complete picture.
  2. Assessment of Liabilities: We provide a comprehensive overview of your potential inheritance tax liabilities.
  3. Basic Recommendations: Receive tailored recommendations for minimizing your potential inheritance tax in a straightforward, understandable manner.

Who Can Benefit? This package is ideal for:

  • Individuals beginning to plan their estate.
  • Families wanting a basic understanding of potential inheritance tax implications.
  • Anyone seeking professional advice without the complexity of more comprehensive packages.

Conclusion: Inheritance tax planning need not be overwhelming. With GM Professional Accountants’ Basic Inheritance Tax Review Package, you get the essential services you need to begin understanding and planning for your future. Contact us today to learn more and take the first step towards securing your financial legacy.

Ready to simplify your inheritance tax planning? Contact GM Professional Accountants today to schedule your consultation and start with our Basic Inheritance Tax Review Package.

ECommerce & Taxation: Preparing Limited Company for 2024 Corporation Tax Filing

ECommerce Tax Mastery: Preparing Your Limited Company for 2024 Corporation Tax Filing on Amazon, Shopify, eBay, and Etsy with GM Professional Accountants

Introduction: The 2024 corporation tax filing season is pivotal for limited companies operating in the eCommerce sphere, especially on platforms like Amazon, Shopify, eBay, and Etsy. At GM Professional Accountants, our focus is to streamline this process, ensuring compliance and maximising tax efficiency. This blog aims to equip eCommerce businesses with the knowledge and strategies needed to prepare effectively for corporation tax filing, with real-world examples of tax calculations and deductions.

Find out more

Understanding Corporation Tax Changes in 2024: The UK’s tax landscape is dynamic, and 2024 is no exception. Keeping up-to-date with the changes is critical for eCommerce entities. GM Professional Accountants ensures your business is aware of the latest tax rates, allowances, and reliefs. For example, if the corporation tax rate changes to 25%, an eCommerce company with a taxable profit of £100,000 would face a tax liability of £25,000, barring other deductions and reliefs.

Organising Financial Records: Accurate financial record-keeping is the backbone of effective tax filing. When dealing with platforms like Amazon, Shopify, eBay, and Etsy, it’s essential to have a meticulous record of transactions, expenses, and revenues. We assist in creating robust accounting systems that cater to the specific requirements of each platform.

Claiming Appropriate Deductions: Maximising tax efficiency involves utilising all available deductions. For instance, an eCommerce business on Amazon may claim deductions for expenses like Amazon seller fees, shipping costs, and packaging materials. Similarly, a business using Shopify could deduct subscription fees and costs associated with website design and maintenance. GM Professional Accountants can guide you through identifying and claiming such deductions.

Example of Tax Deductions: Consider an eCommerce business with an annual profit of £120,000. The company incurs expenses like platform fees (£5,000), shipping and packaging (£10,000), and marketing (£15,000). These deductible expenses totalling £30,000 would reduce the taxable profit to £90,000, thus lowering the corporation tax liability.

Addressing International Tax Concerns: Selling on international platforms requires a keen understanding of global tax issues, including VAT and multi-currency transactions. We navigate these complexities, ensuring compliance across borders.

Leveraging Technology for Tax Compliance: Modern digital tools and software can significantly streamline tax preparation and filing. We recommend and integrate the best tech solutions for your business needs.

Planning for the Future: Our approach goes beyond compliance, focusing on strategic planning to support your business’s growth and sustainability.

Conclusion: Navigating corporation tax filing for your eCommerce business on platforms like Amazon, Shopify, eBay, and Etsy is a sophisticated process. GM Professional Accountants provides the expertise to ensure compliance and optimisation. Contact us to prepare your limited company for the upcoming tax season and leverage our expertise for your financial success.

Gear up for the 2024 tax season with GM Professional Accountants. Our tailored services for eCommerce platforms like Amazon, Shopify, eBay, and Etsy ensure you make the most of every tax advantage. Contact us today for comprehensive support and guidance.

Corporation Tax Filing 2024: A Step-by-Step Guide for eCommerce Businesses

Corporation Tax Filing in 2024: A Step-by-Step Guide for eCommerce Businesses

The landscape of corporation tax filing is ever-evolving, and as 2024 approaches, eCommerce businesses must stay informed and prepared. At GM Professional Accountants, we understand the complexities of tax regulations that impact online retailers and digital marketplaces. This comprehensive guide will lead you through the essential steps of corporation tax filing for the year 2024, ensuring your eCommerce business remains compliant and efficient.

Find out more

Understanding Corporation Tax for eCommerce in 2024

Corporation Tax is a tax on the profits of limited companies in the UK, and as an eCommerce business, it’s vital to understand how these rules apply to you. In 2024, several changes have been introduced, affecting how online businesses file and pay their taxes.

Step 1: Assess Your Taxable Profits

Know Your Taxable Income: Your company’s taxable profits are not just the sales you make. They also include income from investments and selling assets for more than they cost (capital gains).

Deductible Expenses: Identify what business expenses can be deducted. For eCommerce businesses, this might include costs like web hosting, inventory purchases, shipping, and marketing expenses.

Step 2: Prepare Your Financial Records

Accurate Record-Keeping: Ensure that all your financial transactions are accurately recorded. This includes sales, expenses, and investments. Digital accounting software can be a great asset here.

Annual Accounts Preparation: Your annual accounts, also known as statutory accounts, must be prepared at the end of your financial year. These should be in accordance with the latest accounting standards.

Step 3: Calculate Your Corporation Tax

Use HMRC’s Rates: The Corporation Tax rate for the year 2024 needs to be checked on HMRC’s official website. Rates can vary year on year.

Calculate Your Liability: Apply the Corporation Tax rate to your taxable profits to find out how much tax you owe.

Step 4: File Your Tax Return

Filing Deadline: For the year 2024, ensure you file your tax return by your company’s deadline, which is usually 12 months after the end of the accounting period.

Online Filing: Use HMRC’s online service or commercial software to file your Company Tax Return. The return should include your company’s Corporation Tax bill and the supporting documents.

Step 5: Pay Your Corporation Tax

Payment Deadline: Pay your Corporation Tax before the deadline, which is usually nine months and one day after the end of the accounting period for your previous financial year.

Electronic Payments: It’s advisable to make payments electronically through bank transfer, Direct Debit, or via HMRC’s online services.

Navigating Complexities with Expert Help

The process of corporation tax filing can be intricate, especially with the specific challenges and opportunities that eCommerce businesses face. At GM Professional Accountants, we specialize in providing tailored advice and services that simplify this process. Our expertise in eCommerce accounting ensures that your business not only complies with tax laws but also leverages potential tax advantages.

Why Choose GM Professional Accountants?

  • Specialized eCommerce Accounting Services: We understand the unique needs of online businesses.
  • Compliance and Efficiency: Our team ensures that your filings are accurate and timely, avoiding penalties.
  • Strategic Tax Planning: We help you identify ways to minimize your tax liability legally.

Final Thoughts

Staying ahead in the dynamic world of eCommerce requires not just business acumen but also a keen understanding of financial regulations. With the right approach to corporation tax filing, you can ensure that your business thrives in 2024 and beyond.

For personalized assistance and more information on how we can help your eCommerce business navigate corporation tax challenges, contact GM Professional Accountants today.


GM Professional Accountants – Empowering eCommerce Businesses with Expert Tax Solutions.

E-commerce Business Companies house accounts filing 2023/24

E-commerce Business Company Accounts Filing for 2023/2024: A GM Professional Accountants Guide

Welcome to our latest blog post from GM Professional Accountants, focusing on a pivotal aspect for UK-based e-commerce businesses: company accounts filing for the fiscal years 2023/2024. As the digital marketplace continues to expand, keeping abreast of financial compliance is crucial. This guide is crafted to assist e-commerce enterprises in navigating the complexities of financial reporting in these changing times.

Find out more

The Evolving Landscape of E-commerce Financial Compliance

The fiscal years 2023/2024 introduce notable changes in the UK’s accounting practices, particularly impacting e-commerce businesses. These alterations are designed to streamline financial reporting and enhance transparency in the burgeoning digital economy.

The Push Towards Digital Accounting

A key change is the HMRC’s move towards further digitalisation. The ‘Making Tax Digital’ initiative is more relevant than ever for e-commerce businesses, necessitating a shift to digital solutions for efficient and precise financial reporting.

Updated Reporting Standards

The introduction of new reporting standards and guidelines is aimed at increasing transparency and accountability for online businesses. It’s vital for e-commerce companies to be cognisant of these changes to ensure their financial statements are compliant.

Essential Steps for E-commerce Accounts Filing in 2023/2024

Adopting Digital Accounting Software

It’s imperative to use modern accounting software that aligns with HMRC’s digital requirements. These tools offer streamlined, accurate financial management, which is crucial for e-commerce businesses.

2. Staying Informed About VAT Changes

VAT regulations continue to evolve, especially concerning cross-border transactions. E-commerce businesses must stay informed about these changes to manage their VAT obligations accurately.

3. Understanding the Impact of Brexit

Brexit has brought about significant changes in tax and duty implications for e-commerce businesses, especially those trading with the EU. Understanding these changes is essential for accurate filing and compliance.

4. Compliance with International Standards

For those trading internationally, compliance with global accounting standards is crucial. This includes understanding the tax implications in different jurisdictions.

5. Regular Financial Health Checks

Regular reviews of your financial health help identify areas for improvement, ensuring your e-commerce business remains profitable and compliant.

How GM Professional Accountants Can Help

At GM Professional Accountants, we specialise in assisting e-commerce businesses with their financial needs. Our services include:

– Bespoke Accounting Solutions: Tailored to the unique needs of your e-commerce business.
– Digital Compliance Expertise: Ensuring your business meets all digital reporting requirements.
– VAT and Tax Advice: Providing up-to-date information on VAT and tax obligations.

Conclusion

As we move through the fiscal years 2023/2024, the landscape of company accounts filing for e-commerce businesses is evolving. With GM Professional Accountants, you have a partner who understands these changes and can guide your business through them. Embracing digital solutions, staying informed, and seeking expert advice are key to ensuring that your e-commerce business not

only remains compliant but also thrives in this dynamic digital era.

Embracing Technology for Growth

Technology is not just a tool for compliance; it’s a vehicle for growth. By adopting the latest digital accounting solutions, e-commerce businesses can gain insights into their financial performance, streamline operations, and make data-driven decisions for expansion and efficiency.

Proactive Financial Management

In the fast-paced world of e-commerce, proactive financial management is crucial. Regularly updating your financial strategies to adapt to market changes, consumer trends, and regulatory updates can position your business for long-term success.

Building a Strong Financial Foundation

Your company’s financial health is the foundation of your business success. GM Professional Accountants helps you build a strong financial base, ensuring that all aspects of your accounts filing are handled with precision and foresight.

Partner with GM Professional Accountants

Choosing GM Professional Accountants means more than just meeting compliance requirements. It means partnering with a team that is committed to the growth and success of your e-commerce business. Our expertise in digital accounting, combined with a deep understanding of the e-commerce sector, makes us the ideal choice for your company.

Stay Ahead with GM Professional Accountants

As we look forward to the rest of 2023 and into 2024, e-commerce businesses face a landscape filled with both challenges and opportunities. With GM Professional Accountants by your side, you can confidently navigate this terrain, ensuring that your business not only meets its financial obligations but also seizes opportunities for growth and innovation.

Amazon FBA VAT Return Filing in 2024

Navigating Amazon FBA VAT Return Filing in 2024: Insights from GM Professional Accountants

The landscape of VAT (Value Added Tax) return filing, especially for Amazon FBA (Fulfilment by Amazon) sellers, is a dynamic and often complex area. As we step into 2024, it’s crucial for businesses to stay ahead of the curve in managing their VAT obligations. At GM Professional Accountants, our expertise in this domain is tailored to provide you with comprehensive guidance. In this blog, we’ll navigate through the essentials of Amazon FBA VAT return filing in 2024, ensuring your business remains compliant and efficient.

Find out more

Understanding the Basics

Before diving into the intricacies, it’s important to grasp the basic framework of VAT for Amazon FBA sellers. VAT is a consumption tax levied on most goods and services provided in the UK and the EU. As an Amazon FBA seller, you are responsible for collecting and remitting VAT to the respective authorities, depending on where your goods are stored and sold.

Changes in 2024

The year 2024 brings with it several updates in VAT regulations that impact Amazon FBA sellers. The most notable is the digitalization of VAT return filing, aiming to streamline the process and reduce errors. This move towards digital platforms aligns with the broader HM Revenue and Customs (HMRC) initiative to make tax digital.

Key Considerations for Amazon FBA VAT Returns

1. Registration Thresholds:** First and foremost, determine if your business exceeds the VAT registration threshold. This is a critical step in ensuring compliance.

2. Cross-Border Transactions:** With Amazon FBA, your inventory might be stored in multiple countries. It’s essential to understand the VAT implications in each of these jurisdictions.

3. Digital Record Keeping:** With the push towards digitalization, maintaining accurate digital records of your sales and VAT is more important than ever. Invest in reliable accounting software that integrates seamlessly with Amazon’s systems.

4. Filing Deadlines:** Stay ahead of filing deadlines to avoid penalties. The digitalization of VAT returns in 2024 also means a faster, more efficient filing process, but it requires diligence.

5. Reverse Charge Mechanism:** Be aware of the reverse charge mechanism, which applies to certain goods and services, shifting the responsibility of VAT payment from the seller to the buyer.

GM Professional Accountants: Your Partner in Compliance

At GM Professional Accountants, we specialize in navigating the complexities of VAT for Amazon FBA sellers. Our services include:

-VAT Registration and Filing:** We handle the entire process, ensuring that your business meets all regulatory requirements.

Strategic Planning:** We offer bespoke advice tailored to the unique needs of your business, focusing on maximizing efficiency and minimizing liabilities.

Ongoing Support:** Our team stays abreast of the latest changes in VAT legislation, offering you ongoing support and updates.

Digital Solutions:** We leverage cutting-edge accounting software to integrate with your Amazon FBA account, ensuring seamless record-keeping and reporting.

Conclusion

Navigating Amazon FBA VAT return filing can be daunting, but with the right guidance and support, it can be managed effectively. As we embrace the changes in 2024, GM Professional Accountants remains committed to providing expert advice and solutions tailored to Amazon FBA sellers. Our goal is to ensure that your business not only remains compliant but also

thrives in an increasingly digital and complex tax environment.

Embracing Technology for Efficiency

The move towards digital VAT return filing in 2024 is not just about compliance; it’s also an opportunity to enhance operational efficiency. Leveraging technology for automated record-keeping and reporting can save significant time and resources. This allows Amazon FBA sellers to focus more on growing their business and less on administrative tasks.

Tailored Advice for Diverse Needs

Each Amazon FBA business has its unique challenges and opportunities. Whether you are a start-up or an established enterprise, our approach is always personalized. We take into account your business size, product categories, and international reach to provide tailored VAT solutions.

Beyond Compliance: Strategic Growth

At GM Professional Accountants, we believe in going beyond mere compliance. Our expertise is aimed at turning VAT management into a strategic advantage for your business. By optimizing VAT processes, we help improve cash flows and uncover potential tax savings, contributing to the overall growth and profitability of your Amazon FBA business.

Stay Informed, Stay Ahead

In the fast-evolving world of e-commerce and tax regulations, staying informed is key to staying ahead. Through our blogs, newsletters, and consultations, we keep you updated on the latest in VAT regulations and best practices. This proactive approach ensures that your business is always a step ahead in compliance and efficiency.

Your Trusted Advisor in VAT Management

Choosing GM Professional Accountants means choosing a partner who understands the intricacies of Amazon FBA and VAT. Our commitment to excellence, combined with our deep expertise in financial services, makes us the ideal choice for Amazon FBA sellers looking to navigate VAT return filing in 2024 and beyond.

Conclusion

As we look ahead into 2024, the landscape of VAT return filing for Amazon FBA sellers is set to become more streamlined yet more complex in its compliance requirements. With GM Professional Accountants by your side, you can navigate these changes confidently and continue to grow your business. Reach out to us today to learn more about how we can assist you in mastering your VAT obligations and enhancing your business’s financial health.

*GM Professional Accountants is a leading accounting firm specializing in financial services for Amazon FBA sellers. Our team of experts is dedicated to providing tailored, proactive, and comprehensive financial advice and solutions. Contact us to learn how we can help your business thrive in the ever-changing world of e-commerce and taxation.*

Navigating Financial Landscapes: Expert Accountancy Services in Ilford

Navigating Financial Landscapes: Expert Accountancy Services in Ilford – Your Guide to Local Tax, Payroll & Financial Management


Introduction

Navigating the complex world of finance can be daunting for businesses and individuals alike in Ilford. Whether it’s understanding the latest tax laws or managing payroll efficiently, having the ‘best accountant in Ilford‘ at your service is invaluable. This blog post delves into the crucial services offered by local accountancy experts, highlighting how they cater to the specific needs of the Ilford community.

Find out more

Ilford Tax Advisory: Staying Ahead of Changes

Taxation is an ever-evolving landscape, and staying abreast of these changes is essential for any successful business or individual. Ilford, with its unique local economy, is no exception. As top-tier Ilford tax advisors, we specialize in interpreting these changes. From new legislation to regional tax incentives, we ensure that our clients in Ilford are not only compliant but also taking full advantage of available tax benefits.

Payroll Services in Ilford: Simplifying Your Business

Efficient payroll management is vital for the smooth operation of any business. In Ilford, where businesses range from start-up’s to established enterprises, the need for tailored payroll services is significant. Our expertise in ‘payroll services in Ilford’ ensures that your business’s payroll needs are handled with the utmost precision, allowing you to focus on growing your business.

Personalized Accountancy for Ilford’s Diverse Needs

Every business and individual in Ilford has unique financial requirements. Our approach is not one-size-fits-all. Whether you’re a local retailer requiring bookkeeping assistance or a tech start-up in need of strategic financial planning, our services are tailored to meet your specific needs. This personalized approach not only sets us apart as the ‘best accountants in Ilford’ but also ensures that our clients receive the highest quality of service.

Staying Informed: Local Financial Events and Updates

Ilford’s economic environment is dynamic, with regular financial events and updates that can impact businesses and individuals. We believe in keeping our clients informed and ahead of the curve. Our regular updates on local financial events, workshops, and seminars are designed to keep the Ilford community knowledgeable and prepared for any financial challenges.

Conclusion

In the bustling economic landscape of Ilford, having a reliable, knowledgeable, and local accountant is more than a convenience – it’s a necessity. As the go-to experts for ‘Ilford tax advisory’, ‘best accountant in Ilford’, and ‘payroll services in Ilford’, we are committed to providing top-notch services tailored to the unique needs of the Ilford community. Our dedication to staying updated on local financial events and changes in regional tax laws ensures that our clients are always one step ahead.

Valuing your estate and your options before taking out a trust life insurance policy 2024

Understanding Estate Valuation and Trust Life Insurance Options

Introduction:

Navigating the complexities of estate planning is a crucial step for anyone looking to secure their financial future and that of their beneficiaries. Among the key considerations is the valuation of your estate and understanding your options before opting for a trust life insurance policy. This blog post delves into the essentials of estate valuation and explores the strategic use of trust life insurance policies, offering insights for individuals within the UK financial services market.

Find out more

Understanding Estate Valuation:

Estate valuation is the process of calculating the total value of an individual’s assets at the time of their death. This is everything from real estate and investments to personal belongings. Accurate valuation is essential, as it determines the inheritance tax liabilities and influences how assets are distributed among beneficiaries.

Key Factors in Estate Valuation: The valuation takes into account market values of properties, outstanding debts, and other financial obligations. It’s important to regularly update estate valuations to reflect current market conditions and any changes in your asset portfolio.

– Professional Appraisal:Consider engaging a professional appraiser or a chartered accountant specializing in estate planning. GM Professional Accountants can provide expert guidance, ensuring your estate is evaluated accurately and efficiently.

Options Before Opting for a Trust Life Insurance Policy:
Trust life insurance is a policy written in trust, meaning it’s separate from your estate for tax purposes. This can be a strategic tool in estate planning, but understanding your options before committing is crucial.

Assessing Your Needs: Evaluate your financial goals, the size of your estate, and the potential tax implications. It’s about striking the right balance between providing for your beneficiaries and optimizing tax efficiency.

– Choosing the Right Trust: There are various types of trusts, each with its unique features. Discretionary trusts offer flexibility in how and when beneficiaries receive their inheritance, while fixed trusts provide more certainty over who gets what.

Integrating Trust Life Insurance into Your Estate Plan:
Incorporating a trust life insurance policy into your estate plan can offer several advantages:

– Avoiding Inheritance Tax: Since the policy is not considered part of your estate, the payout is usually free from inheritance tax, allowing more of your wealth to pass to your beneficiaries.

– Control and Protection: Trusts provide a level of control over your assets after your passing, ensuring that your wishes are respected and that vulnerable beneficiaries are protected.

– Speedy Pay outs: Trust life insurance policies can often be paid out quickly after death, providing immediate financial support to your beneficiaries without the delays of probate.

Conclusion:
Valuing your estate accurately and exploring your options before taking out a trust life insurance policy are fundamental steps in effective estate planning. At GM Professional Accountants, we specialize in guiding clients through these intricate processes, ensuring that your estate plan aligns with your financial goals and provides peace of mind for the future. For personalized advice and assistance in navigating these decisions, feel free to contact our team of experts.

This blog post is tailored to be informative, engaging, and aligned with the branding of GM Professional Accountants. It positions the firm as a knowledgeable authority in estate planning and financial services, encouraging reader engagement and inquiries.

International Cryptocurrency Taxation: What UK Residents Need to Know 2024

Introduction

In the rapidly evolving landscape of cryptocurrency, UK residents engaging in international transactions face a unique set of challenges. Understanding the tax implications is crucial to ensure compliance and optimize tax strategies. This blog delves into the intricacies of international cryptocurrency taxation and what UK residents need to know.

Understanding the Basics of Cryptocurrency Taxation in the UK

Before diving into the international aspect, it’s important to grasp how the UK treats cryptocurrency for tax purposes. HM Revenue and Customs (HMRC) does not consider cryptocurrency as currency or money. Instead, it’s subject to Capital Gains Tax and Income Tax, depending on the nature of transactions. This foundational knowledge sets the stage for understanding international tax obligations.

Cross-Border Transactions: The Tax Implications

When UK residents transact with cryptocurrencies across borders, several factors come into play:

  1. Double Taxation Agreements (DTAs): The UK has DTAs with numerous countries to prevent double taxation on income and gains. How these agreements apply to cryptocurrency can vary, making professional guidance essential.
  2. Reporting Foreign Assets: UK residents must declare any foreign asset, including cryptocurrencies, if they fall under certain thresholds. Failure to report can lead to significant penalties.
  3. Tax Residency and Domicile Status: Your tax obligations in the UK depend heavily on your residency and domicile status. This affects how your international crypto assets are taxed.

Compliance with HMRC Regulations

Compliance is key in managing international cryptocurrency taxation. This includes:

  • Accurate Record-Keeping: Keeping detailed records of all international transactions, including dates, values, and the type of transaction.
  • Declaration of Assets: Reporting foreign cryptocurrency assets in your tax returns.
  • Understanding Anti-Money Laundering Regulations: Be aware of how these regulations affect international crypto transactions.

Strategic Tax Planning with Cryptocurrencies

Effective tax planning can help in legally minimizing tax liabilities. Strategies include:

  • Timing of Transactions: Understanding when to realize gains or losses can be advantageous.
  • Utilizing DTAs: Leveraging double taxation agreements to reduce tax burdens.
  • Seeking Professional Advice: Consulting with experts in international cryptocurrency taxation ensures compliance and optimal tax planning.

Conclusion

Navigating international cryptocurrency taxation is a complex task, but with the right knowledge and strategies, UK residents can remain compliant and tax-efficient. As the digital currency landscape continues to evolve, staying informed and seeking expert advice is more important than ever.

Should you charge overseas customers International VAT? 2024

Understanding VAT on International Services

1. The Basic Framework

VAT is a tax charged on most goods and services in the UK. When it comes to international transactions, the rules can vary significantly. Understanding these can help you avoid costly mistakes and ensure compliance.

Find out more

2. Services to EU and Non-EU Customers

Post-Brexit, the VAT rules for services provided to EU customers have changed. It’s essential to distinguish between services offered to EU and non-EU based clients, as different VAT rules may apply.

3. The Place of Supply Rules

The ‘place of supply’ rules are crucial in determining if you need to charge VAT. For most services, the place of supply is where your customer is based. If outside the UK, your services might be outside the scope of UK VAT.

4. Exceptions and Specific Cases

Certain services, like digital products, consultancy, or professional services, have specific rules. Familiarizing yourself with these can save you from falling into common pitfalls.


Case Studies and Practical Examples

To better understand these principles, let’s examine a few scenarios where a UK-based financial service provider interacts with overseas clients. These real-world examples will illustrate how VAT rules are applied in different situations.


Staying Compliant and Up-to-Date

1. Regular Consultations with HMRC Guidelines

HMRC regularly updates its guidelines. Keeping abreast of these changes is crucial for compliance and effective financial planning.

2. Professional Advice

For complex cases, seeking professional advice is recommended. At GM Professional Accountants, we specialize in providing tailored advice to financial service providers in the UK.


Conclusion

Understanding and applying VAT rules for international customers is a nuanced process. By staying informed and seeking expert guidance when necessary, UK businesses can navigate these waters effectively, ensuring compliance and optimal financial performance.

For more in-depth advice and bespoke solutions for your business, visit GM Professional Accountants.

Flat rate scheme threshold to leave exceeding 2024

Understanding the VAT Flat Rate Scheme Threshold in the UK

For many UK small businesses, the VAT Flat Rate Scheme (FRS) offers a simplified way to handle VAT. However, with growth comes new challenges, such as exceeding the FRS turnover threshold of £230,000 (including VAT). This pivotal point requires a strategic shift in your VAT handling, and GM Professional Accountants stands ready to guide you through this transition.

Find out more

Identifying the Right Time to Exit the FRS

Leaving the FRS isn’t just about turnover; it’s about timing and strategy. Key indicators include:

  1. Annual Turnover Exceeds £230,000: This is the primary trigger for exiting the scheme. Once your VAT-inclusive turnover goes over this limit, you must leave the scheme.
  2. Anticipated Growth: If you expect your turnover to exceed £230,000 in the next 12 months or your total income in the next 30 days alone to be more than £230,000, it’s time to plan your exit.
  3. Changes in Business Model or Expenses: Shifts in your business model or a decrease in VAT-chargeable expenses might mean the FRS is no longer the best option.

The Role of GM Professional Accountants

Navigating out of the FRS involves critical decisions and adjustments. GM Professional Accountants offer expert guidance to ensure a smooth transition:

  1. Comprehensive Analysis: An in-depth review of your financials to determine the best VAT approach post-FRS.
  2. Customized Advice: Tailored strategies that align with your business growth and financial objectives.
  3. Ensuring Compliance: Guidance to keep your business compliant with evolving HMRC regulations.
  4. Ongoing Support: Continuous support from GM Professional Accountants to adapt to and capitalize on your new VAT structure.

Maximizing Benefits with GM Professional Accountants

Exiting the FRS marks a new phase in your business journey. GM Professional Accountants ensure that this transition not only keeps you compliant but also positions your business for optimal financial health.

Conclusion

Surpassing the VAT Flat Rate Scheme threshold reflects your business’s growth and success. With GM Professional Accountants, this milestone becomes an opportunity for even greater financial strategy and efficiency.

Contact GM Professional Accountants

Embark on your VAT journey with confidence. Contact GM Professional Accountants for expert guidance and support.


This blog post is provided for informational purposes only and should not be construed as financial advice. For tailored advice, consult with GM Professional Accountants directly.

How to save company corporation tax at the 25% rate

**How to Save Corporation Tax at the 25% Rate: Key Considerations for UK Businesses**

In the ever-evolving landscape of UK financial services, understanding how to effectively manage corporation tax – especially at the 25% rate – is crucial for businesses. Not only does it enhance your financial efficiency, but it also aligns with prudent fiscal management. Here, we delve into the essential considerations and strategies to help you save on corporation tax.

Find out more

**1. Maximise Allowable Deductions:**

One of the primary ways to reduce your corporation tax bill is by maximising allowable deductions. This includes business expenses, such as office supplies, travel costs, and staff salaries. However, it’s crucial to ensure these expenses are wholly and exclusively for business purposes. Additionally, capital allowances can be claimed on assets like machinery and business vehicles, offering significant savings.

**2. Utilise R&D Tax Credits:**

For businesses engaged in innovation, Research and Development (R&D) Tax Credits are a goldmine. They allow companies to reduce their tax bill or receive a tax refund based on their R&D expenditure. This can include costs related to developing new products, processes, or services. If your business is pioneering in its field, exploring these credits is a must.

**3. Consider Corporate Structure:**

Your business’s corporate structure plays a pivotal role in tax management. For instance, operating as a limited company may offer tax efficiencies compared to being a sole trader or partnership. Moreover, forming a group structure with subsidiaries can open up opportunities for tax planning, including group relief provisions.

**4. Claim Relief on Losses:**

Businesses experiencing losses have the option to claim relief. These losses can be carried back to previous years (against taxable profits) or carried forward against future profits. Understanding how to navigate these options can significantly impact your tax liabilities.

**5. Pay Attention to Pension Contributions:**

Pension contributions made by the company can be a tax-efficient way to extract profits. Contributions to employee pension schemes are usually deductible against corporation tax. Additionally, considering your own pension contributions as a director could be a strategic move.

**6. Engage in Effective Dividend Planning:**

The decision between taking a salary or dividends from your company can impact your tax liability. While salaries are an allowable expense for corporation tax purposes, dividends are not. However, dividends do not attract National Insurance contributions and could be taxed at a lower rate personally, depending on your income level.

**7. Seek Professional Advice:**

Tax laws are complex and ever-changing. Seeking advice from a professional accountant can offer tailored strategies that suit your business’s specific needs. This includes navigating new tax rules, understanding sector-specific incentives, and planning for long-term tax efficiency.

In conclusion, reducing your corporation tax liability at the 25% rate involves a multifaceted approach. From maximising deductions to strategic planning, each aspect requires careful consideration. By staying informed and seeking expert guidance, your business can achieve significant tax savings, thereby bolstering its financial health and competitive edge in the market.

Accounting for renewable green energy Ltd companies UK

Navigating the Financial Currents: Accounting for Renewable & Green Energy in the UK

Introduction:
In the ever-evolving landscape of the UK’s energy sector, renewable and green energy are becoming pivotal in shaping a sustainable future. As businesses and individuals alike embrace this green revolution, understanding the financial intricacies of renewable energy investments becomes crucial. This blog post delves into the critical aspects of accounting for renewable and green energy in the UK, offering insights into how GM Professional Accountants can guide you through these complex financial waters.

Find out more

1. The Rise of Renewable Energy in the UK’s Financial Ecosystem:

Renewable energy in the UK is not just an environmental movement; it’s a burgeoning economic force. With the government’s commitment to reducing carbon emissions and the increasing viability of renewable technologies, there’s a growing need for specialized accounting practices that cater to this sector. We’ll explore the current landscape and the financial incentives available for businesses and individuals investing in green energy.

2. Understanding the Financial Incentives and Schemes:

The UK government offers various schemes and incentives to encourage the adoption of renewable energy. From Feed-in Tariffs (FiTs) to the Renewable Heat Incentive (RHI) and Contracts for Difference (CfDs), we’ll demystify these programs and discuss how they can impact your accounting and financial planning. Learn how to maximize benefits and navigate the complex reporting requirements with GM Professional Accountants’ expertise.

3. Accounting Challenges and Opportunities:
Adopting renewable energy comes with its unique set of accounting challenges. From capitalizing assets and understanding depreciation schedules for solar panels and wind turbines to recognizing government grants and managing feed-in tariff income, we break down the complexities. Discover the opportunities these challenges present, such as tax credits and enhanced capital allowances, and learn how to leverage them for your financial advantage.

4. Case Studies: Success Stories of Green Energy Accounting:
Real-world examples bring to life the impact of effective accounting in the renewable energy sector. We’ll share success stories of businesses that have successfully navigated the financial aspects of green energy , showcasing the strategic planning and accounting acumen that contributed to their success. Learn from their experiences and understand how GM Professional Accountants can replicate this success for your business.

5. Future Trends and How to Prepare:
The renewable energy sector is continuously evolving, with new technologies and financial regulations emerging regularly. We’ll discuss the future trends in green energy and their potential impact on accounting practices. Stay ahead of the curve by understanding what’s on the horizon and preparing your finances accordingly with proactive strategies and expert advice from GM Professional Accountants.

Conclusion:
Accounting for renewable and green energy in the UK presents both challenges and opportunities. As the sector grows and evolves, so too must the financial strategies that support it. Whether you’re a business owner investing in renewable technology or an individual seeking to understand the financial implications of green energy, GM Professional Accountants is here to guide you through every step. Embrace the future of energy with confidence, knowing your financial affairs are in expert hands.

Ready to power up your financial strategy with renewable energy insights? Contact GM Professional Accountants today to schedule a consultation and embark on a journey to financial clarity and sustainability in the green energy sector.

Inheritance tax planning options 2024

Inheritance Tax Planning: Navigating Your Options with GM Professional Accountants

Inheritance tax (IHT) planning is an essential aspect of financial management that can significantly affect your family’s future. Understanding how to navigate through the complex landscape of IHT is crucial to ensure that your loved ones can benefit as much as possible from your estate. At GM Professional Accountants, we specialise in offering tailored advice and strategies to help you mitigate your inheritance tax liabilities.

Find out more

Understanding Inheritance Tax

In the UK, IHT is a tax on the estate (the property, money, and possessions) of someone who’s passed away. The current threshold for IHT is £325,000, and anything above this amount is taxed at 40%. However, with careful planning and strategic advice, it’s possible to significantly reduce the IHT burden.

Utilise Allowances and Reliefs

One of the most straightforward ways to reduce your IHT is by making full use of allowances and reliefs. For instance, the ‘nil-rate band’ allows for the first £325,000 of your estate to be passed on tax-free. There’s also the ‘residence nil-rate band’ if you’re passing your home to direct descendants. Understanding and utilising these allowances can substantially reduce your IHT.

Gift Assets During Your Lifetime

Gifting assets to your loved ones during your lifetime can reduce the size of your estate and therefore the IHT due. There are various types of gifts with different tax rules, such as ‘annual exemption’ and ‘potentially exempt transfers.’ However, rules around gifting can be complex, and it’s essential to consult with professionals like GM Professional Accountants to avoid unforeseen implications.

Trusts as a Planning Tool

Trusts can be an effective way to manage and control how your assets are used and distributed after your death, potentially reducing your IHT liability. Different types of trusts offer various benefits and are subject to different tax rules. Professional advice is crucial to ensure that you choose the right trust for your situation.

Invest in IHT Efficient Investments
Certain investments qualify for Business Relief and can be passed on free of IHT if held for at least two years at the time of death. This includes shares in qualifying unlisted companies and some AIM-listed shares. These investments can be higher risk, so advice and management from knowledgeable accountants are invaluable.

Keep Your Will Up to Date
An outdated will can lead to unintended tax consequences and financial distress for your beneficiaries. Regularly reviewing and updating your will with professional guidance ensures that your estate is distributed according to your wishes and in a tax-efficient manner.

How GM Professional Accountants Can Help
At GM Professional Accountants, we understand that every individual’s situation is unique. Our team of dedicated experts specialises in creating bespoke inheritance tax planning strategies that align with your personal goals and circumstances. We’ll guide you through the maze of regulations and options, ensuring that your assets are protected and your loved ones are provided for.

Inheritance tax planning can be complex and overwhelming, but with the right advice and strategies, you can navigate it effectively. Let GM Professional Accountants be your partner in this journey, providing the expertise and support you need to make informed decisions for your future and that of your family.
Contact GM Professional Accountants today to discuss how we can assist you in optimising your inheritance tax planning and securing your legacy.

Business property relief inheritance tax exemptions and pitfalls 2024

Maximising Benefits & Avoiding Pitfalls: A Guide to Business Property Relief and Inheritance Tax Exemptions in the UK

Business Property Relief (BPR) is a significant aspect of inheritance tax planning in the UK. It offers up to 100% relief on business assets, making it an attractive option for business owners looking to pass on their business to the next generation. However, navigating the nuances of BPR can be complex, and there are several potential pitfalls to be aware of.

Find out more

Understanding Business Property Relief

BPR is designed to prevent the breakup of a business upon the owner’s death due to inheritance tax liabilities. It allows for a reduction in the value of business assets when calculating the inheritance tax due. The relief is available at rates of 50% or 100%, depending on the type of assets involved. Generally, shares in a qualifying unlisted company, interests in a partnership, and sole trader businesses are eligible for 100% relief. In contrast, assets owned by the deceased but used in a business they were a part of, or shares in a listed company where the deceased had control, might only qualify for 50% relief.

GM Professional Accountants offer a comprehensive Inheritance Tax Planning service, providing expert guidance to help you navigate the complexities of inheritance tax and maximise your benefits. With their extensive knowledge in Business Property Relief and other tax exemptions, they ensure that your assets are protected and passed on to your loved ones efficiently. Trust GM Professional Accountants to deliver tailored solutions that meet your specific estate planning needs.

Eligibility Criteria

To be eligible for BPR, several conditions must be met:

Business Activity: The business must be trading, as BPR is not available for investment companies.
Ownership Period: The assets must have been owned for at least two years before death.
Type of Asset: Not all business assets qualify for BPR. The relief mainly applies to shares in a company, interests in a partnership, or the business itself.
Common Pitfalls
While BPR offers substantial benefits, there are several pitfalls:

Business Activity Test: HM Revenue and Customs (HMRC) scrutinizes whether a business is trading or investment-based. If significant activities are investment-related, such as renting property, the business may not qualify.

Ownership Period: If the assets have not been owned for at least two years, BPR may be denied. This is particularly crucial when considering transferring business assets as part of estate planning.

Associated Property: BPR may be restricted if the business assets are not used wholly or mainly for business purposes at the time of death.
Binding Contracts for Sale: BPR may not apply if there’s a binding contract to sell the business at the time of death.

Planning Considerations

Effective planning is crucial to maximize the benefits of BPR. Here are some strategies:

Review and Restructure: Regularly review the business structure and activities to ensure they align with BPR eligibility requirements.
Gifts and Transfers: Consider transferring business assets well before death to meet the two-year ownership rule, but be aware of potential Capital Gains Tax implications.
Insurance Policies: Life insurance can provide liquidity to pay any inheritance tax due without needing to sell the business.
Documentation: Keep detailed records to demonstrate that the business is trading and the assets are used for business purposes.

Conclusion
Business Property Relief is a valuable tool for business owners in the UK, offering a way to pass on their life’s work without a significant tax burden. However, its complexities and potential pitfalls require careful planning and consideration. Regular review of the business structure, clear documentation, and understanding the eligibility criteria are vital to ensuring that the relief can be fully utilized. Consulting with a tax professional who specializes in inheritance planning is also advisable to navigate the intricacies of BPR and develop a robust strategy for the future.

Residential long stay exempt from vat differences in holiday let

Understanding VAT Exemptions: Residential Long Stays Vs. Holiday Lets

Navigating the complex terrain of Value Added Tax (VAT) in the UK can be a daunting task, especially when dealing with residential and holiday lettings. As an expert in the financial services sector, GM Professional Accountants is here to demystify the distinctions and intricacies between VAT exemptions for long-term residential stays and short-term holiday lets. This insight is crucial for property owners, real estate investors, and anyone involved in the UK’s accommodation sector.

Find out more

Long-Term Residential Stays: A VAT-Free Haven

Long-term residential stays, typically defined as accommodation used for continuous periods of more than 28 days, are generally exempt from VAT. This exemption is grounded in the principle that these properties are serving as a person’s home or dwelling, rather than a short-term lodging. It’s a relief for many tenants and landlords, as it keeps costs down and simplifies the financial aspects of long-term renting.

However, this isn’t a one-size-fits-all scenario. To be applicable for this exemption, certain conditions must be met. The property must be used exclusively for residential purposes, and the stay must exceed the 28-day threshold without significant interruption. Landlords and property managers must maintain meticulous records to prove the duration and nature of stays to qualify for this exemption.

Holiday Lets: The VAT Landscape

On the flip side, holiday lets, known for their short-term occupancy, generally do not enjoy the same VAT exemption as their long-term counterparts. Properties rented out for leisure purposes for short periods are subject to the standard VAT rate, currently set at 20%. This includes holiday homes, cottages, and any accommodation provided for less than 28 consecutive days.

The implication for property owners is significant. Charging VAT increases the cost for the end consumer and requires the owner to navigate the complexities of VAT registration and returns. However, it’s not all bleak. Being VAT-registered allows owners to reclaim any VAT paid on business-related expenses, potentially offsetting some of the financial burdens.

The Fine Line: When Stays Become Exempt

The distinction between a taxable holiday let and a VAT-exempt long-term stay isn’t always clear-cut. For instance, what happens if a guest initially books for a short holiday but extends their stay beyond 28 days? In such cases, understanding the precise point at which the exemption kicks in is vital. Usually, once the 28-day threshold is crossed, the stay can be treated as exempt, but this transition needs careful handling in terms of documentation and pricing adjustments.

Navigating the VAT Maze: Professional Guidance

The nuances of VAT in property rental can be labyrinthine, with serious financial and legal implications for missteps. That’s where the expertise of GM Professional Accountants comes into play. We provide tailored advice to navigate these rules, ensuring you’re not only compliant but also maximizing your financial efficiency. Whether you’re an individual renting out a holiday cottage or a company managing a portfolio of properties, understanding and applying these VAT rules is crucial to your success.

Conclusion: A Strategic Approach to VAT

In conclusion, distinguishing between VAT treatments for residential long stays and holiday lets is crucial for anyone in the UK’s rental market. By understanding these differences and planning accordingly, landlords and property managers can ensure compliance, optimize their tax position, and provide clear, competitive pricing for their tenants and guests. With GM Professional Accountants, you have a partner to guide you through these complexities, ensuring your property ventures are as profitable and hassle-free as possible.

Stay informed, stay compliant, and optimize your property investments with the right knowledge and expert advice.

Navigating the Latest Tax Landscape: Insights from Ilford Tax Accountant

Navigating the Latest Tax Landscape: Insights from Ilford Tax Accountants

The financial world is always evolving, and staying abreast of the latest accounting and tax news is crucial for businesses and individuals alike. In Ilford, Essex, where the local economy is as diverse as it is vibrant, understanding these changes is particularly essential. Here, at Ilford Tax Accountants, we are dedicated to keeping you informed and prepared for the future. In this blog post, we’ll dive into the latest tax updates and how they might impact residents and businesses in Ilford.

Find out more

 

Understanding the New Tax Regulations

The UK’s tax system continually adapts to reflect the changing economic landscape, and recent updates are no exception. Significant changes have been introduced that could affect your tax planning and compliance. Whether it’s adjustments in tax rates, allowances, or the introduction of new digital reporting requirements, staying informed is not just an option; it’s a necessity for effective financial management.

How Ilford Businesses Can Adapt

For businesses in Ilford, adapting to these new tax regulations means being proactive. It’s not just about compliance; it’s about understanding how these changes can be turned into opportunities for growth and efficiency. Here are some ways Ilford businesses can adapt:

1. Embrace Digital Transformation: With the HMRC pushing forward with Making Tax Digital, it’s time for businesses to embrace digital solutions for tax reporting and management.
2. Seek Professional Advice: The complexity of tax laws means that professional advice isn’t just beneficial; it’s essential. Engaging with Ilford tax accountants can provide you with tailored strategies that align with the latest regulations.
3. Plan Ahead: Effective tax planning can significantly impact your business’s financial health. Understanding how new tax laws affect your upcoming financial years is crucial for long-term success.

The Impact on Individuals in Ilford

Individual taxpayers are also feeling the effects of recent tax updates. From changes in personal allowances to the introduction of new savings incentives, understanding these changes is key to effective personal financial management. Here’s how individuals in Ilford can navigate these changes:

1. Review Your Tax Code: Ensure your tax code reflects your current situation. Any changes in income or personal circumstances could mean your tax code needs updating.
2. Maximize Your Savings: Be aware of any new tax-free savings options or changes to existing ones. Maximizing these can significantly impact your financial planning.
3. Consult with Experts: Understanding the nuances of personal taxation can be challenging. Consulting with Ilford tax accountants can provide you with personalized advice and strategies.

Ilford Tax Accountants: Your Partner in Navigating Change

At Ilford Tax Accountants, we are more than just service providers; we are partners in your financial journey. Our team of experts is dedicated to providing you with up-to-date information and strategies that align with the latest tax laws. Whether you’re a business or an individual, we’re here to ensure that you’re well-equipped to navigate the complexities of the tax world.

Conclusion

The landscape of tax laws and regulations is always changing, and staying informed is crucial for effective financial management. For residents and businesses in Ilford, Essex, understanding and adapting to these changes is key to maintaining compliance and achieving financial success. At Ilford Tax Accountants, we’re committed to providing you with the insights and assistance you need to navigate this ever-evolving landscape. Stay informed, stay prepared, and let’s tackle these changes together.

For professional advice tailored to your specific circumstances, contact Ilford Tax Accountants today.

Value your estate with a professional opinion for your life insurance policy for inheritance tax 2024

 The Importance of Professional Estate Valuation for Your Life Insurance and Inheritance Tax Planning with GM Professional Accountants

 

In the intricate landscape of financial planning, securing your legacy through a life insurance policy is a fundamental step towards peace of mind. However, the crux of effective inheritance tax planning lies in the accurate valuation of your estate. This is where professional advice, especially from a reputable firm like GM Professional Accountants, becomes not just beneficial, but essential. In this article, we delve into the significance of obtaining a professional opinion on the value of your estate to inform your life insurance policy and mitigate inheritance tax liabilities with the expertise of GM Professional Accountants.

Find out more

**Understanding Estate Valuation**

 

Estate valuation is the process of determining the worth of all the assets you will leave behind, including property, investments, and personal belongings. This figure is crucial for several reasons; it dictates the amount of inheritance tax your beneficiaries might have to pay, and it informs the level of life insurance coverage you need to ensure your loved ones are not left with a financial burden.

 

**The Role of Professional Valuation with GM Professional Accountants**

 

Professional accountants and valuers from GM Professional Accountants bring a level of precision and expertise that is difficult to match through DIY methods. They are well-versed in the latest regulations, valuation methods, and tax implications. By valuing your estate accurately, they help in:

 

1. **Determining Adequate Life Insurance Coverage**: The primary role of life insurance in inheritance planning is to provide a lump sum that can cover the inheritance tax bill. A professional valuation from GM Professional Accountants ensures your coverage matches the potential tax liability, preventing your heirs from selling off assets to pay taxes.

 

2. **Mitigating Inheritance Tax**: In the UK, estates over a certain threshold are subject to inheritance tax. GM Professional Accountants’ accurate valuation might reveal legal avenues to mitigate this liability, such as identifying reliefs and exemptions you’re entitled to.

 

3. **Estate Planning Strategies**: Beyond tax and insurance, a professional valuation is a cornerstone for broader estate planning. GM Professional Accountants help in drafting wills, setting up trusts, and planning charitable bequests, ensuring your wishes are fulfilled efficiently.

 

**Choosing the Right Professional**

 

When selecting an expert for estate valuation, choosing a firm with a robust reputation and a track record of success is crucial. GM Professional Accountants, with their extensive experience and deep understanding of the UK’s financial and legal landscape, offer tailored, actionable advice. Their commitment to understanding individual needs and providing clear guidance makes them an ideal choice for your estate valuation needs.

 

**Integrating Valuation into Your Financial Plan**

 

A professional valuation isn’t a one-off task; it should integrate into your ongoing financial planning. Regular reviews are essential, especially when major life events occur. These changes can significantly affect the value of your estate and, consequently, your life insurance and tax planning needs. GM Professional Accountants can provide ongoing support and advice, ensuring your financial plan remains robust and responsive to your life’s changes.

 

**Conclusion**

 

Valuing your estate with a professional opinion from GM Professional Accountants is more than a mere transaction. It’s a strategic move towards safeguarding your legacy and ensuring your loved ones are protected. With the complexities of the UK’s tax laws and the fluctuating nature of asset values, their guidance isn’t just helpful; it’s a necessity. By ensuring your life insurance policy aligns with a meticulously assessed estate value, you take a significant step towards efficient inheritance tax planning and peace of mind for you and your family. Engage with GM Professional Accountants today, and take control of your financial future.

HMRC targets landlords with property businesses LLP

Navigating Tax Compliance: A Guide for Landlords with Incorporated Property Businesses

In the evolving landscape of property taxation, landlords with properties held in incorporated businesses are facing a critical juncture. The HM Revenue and Customs (HMRC) has initiated a nudge campaign targeting buy-to-let landlords who may not have reported their capital gains tax (CGT) liabilities accurately. This campaign is particularly focused on those who incorporated their property business in the tax year 2017/18 and subsequently reported no CGT liability on their self-assessment tax returns. As specialists in financial services, GM Professional Accountants is at the forefront of guiding you through these intricate tax affairs.

Find out more

Understanding the HMRC Nudge Campaign

It’s essential to understand that HMRC’s approach is not indiscriminate but rather focused on a specific group of taxpayers. The campaign’s intent is to prompt landlords to re-evaluate their tax calculations, particularly concerning incorporation relief and the reporting of capital gains.

Incorporation Relief: A Double-Edged Sword

Incorporation relief is a vital consideration for landlords moving properties into a company structure. It can defer capital gains tax, but it’s also where many inadvertently stumble. The relief is contingent upon accurate calculations and understanding of specific technical areas. For instance, the capital gain arising on incorporation must not exceed the transferred property business’s value. Moreover, any gain held over must align with the value of shares received, and sums credited to director’s loans should not distort the incorporation relief calculation.

The Path to Compliance

Receiving a letter from HMRC can be daunting. It typically allows 30 days for landlords to respond or face a potential investigation and a discovery assessment. Key steps for landlords include:

  • Reassessing Tax Calculations: Ensure that all details, especially those relating to incorporation relief and capital gains, are accurate and in line with HMRC’s guidelines.
  • Understanding Technicalities: Familiarize yourself with the specific areas HMRC highlights, such as the calculations involving director’s loans and the value of the property business.
  • Engaging with HMRC: If discrepancies are found, landlords must disclose these errors through a dedicated HMRC email. Conversely, if after a thorough review, your calculations are accurate, informing HMRC through the specified communication channel is crucial.

The Implications of Non-Compliance

The consequences of overlooking this nudge can be significant. Apart from the immediate financial impact of interest on late payments and potential penalties, non-compliance can lead to a comprehensive investigation. HMRC’s powers extend to making a discovery assessment under certain conditions and amending claims based on legislative criteria.

Navigating Forward with Expertise

At GM Professional Accountants, we understand the complexities of property taxation and the nuances of incorporation relief. Our expertise is not just in ensuring compliance but in optimizing your tax position to support your financial goals. As this HMRC campaign unfolds, it’s more important than ever for landlords to seek professional advice to navigate these complex tax waters effectively.

In an environment of heightened scrutiny, staying informed and proactive is your safest bet. By understanding the implications of HMRC’s nudge campaign and taking the necessary steps towards compliance, landlords can safeguard their investments and ensure their tax affairs are in order. With expert guidance and a thorough approach, navigating the complexities of property taxation can be a seamless process.

Estate planning checklist 2024 PDF Word

Estate Planning Checklist 2024: Ensuring Your Loved Ones Are Cared For

Estate planning is a critical process that involves making arrangements for your assets and affairs after you pass away. It’s about ensuring that your loved ones are cared for and your wishes are honoured. As we look towards 2024, it’s more important than ever to be prepared. At GM Professional Accountants, we understand the complexities of estate planning and provide dedicated services to help you secure your legacy and your family’s future. Here’s your comprehensive estate planning checklist for 2024:

Find out more

1. Document Your Assets and Liabilities

  • List all your assets, including properties, investments, and personal valuables.
  • Note down any liabilities, such as mortgages or other debts.

2. Update Your Will

  • Ensure the will is up-to-date and reflects your current wishes.
  • Consider any changes in your life since the last update, such as marriage, divorce, or children.

3. Establish Trusts

  • Determine if setting up a trust is beneficial for you to manage your assets and provide for your heirs.

4. Review Beneficiary Designations

  • Regularly review and update the beneficiaries on your life insurance, retirement accounts, and other policies.

5. Plan for Taxes

  • Understand potential tax implications for your estate and how to minimize the burden on your heirs.
  • GM Professional Accountants can assist in strategizing for estate and inheritance taxes.

6. Draft a Living Will and Healthcare Power of Attorney

  • Outline your wishes for medical care in case you become unable to communicate.
  • Appoint someone to make healthcare decisions on your behalf.

7. Establish a Financial Power of Attorney

  • Appoint a trusted individual to manage your finances if you’re unable to do so.

8. Organize Your Documents

  • Keep all your estate planning documents in a safe but accessible place.
  • Inform your executors or trustees where these documents are stored.

9. Plan for Digital Assets

  • Provide instructions for your digital assets, including social media accounts and digital currencies.

10. Review and Update Regularly

– Revisit your estate plan annually or after significant life changes.

11. Consult with Professionals

– Work with estate planning experts, like GM Professional Accountants, who understand the nuances of estate laws and can offer personalised advice to ensure your estate is handled according to your wishes.
At GM Professional Accountants, we provide comprehensive estate planning services tailored to your unique needs. Our team is dedicated to helping you navigate the complexities of estate planning, offering peace of mind that your loved ones will be cared for according to your wishes. As 2024 approaches, it’s the perfect time to review your estate plan or get started if you haven’t already. Contact us today to ensure your legacy is preserved and your family is protected

Corporation Tax Return deadline Due Date Extension 2024 UK

What will corporation tax be in 2024?

A corporation’s profits are subject to a profit tax. A company must pay taxes on its tax liability, which is the difference between its revenue and its deductible expenses. These expenses include the cost of goods sold, general and administrative expenses, selling and marketing expenses, research and development expenses, depreciation, and other operating expenses.

Find out more

What are the tax deadlines for my company?
This is a summary of the filing and payment dates for corporation tax, self-assessment, payroll, and VAT for the year 2023. There are several deadlines to keep in mind when filing tax returns and making payments. The return or payment is due on the specified due date, regardless of whether it falls on a weekend or holiday.

Corporation tax and Companies House

The corporation tax rate for limited liability companies is 25% of taxable profits.

The accounting period a company uses affects the due dates for tax returns and financial statements. The accounting period refers to the time span the financial statements cover. Typically, it lasts 12 months from when you start a business but can extend up to 18 months.

Twelve months is the maximum period covered by a corporation’s tax return. Longer periods require filing two tax returns for the same accounting period.

Here are the key milestones:

  • The accounts must be filed with Companies House nine months after the accounting period ends.
  • The corporation tax payment deadline is nine months and one day after the accounting period ends.
  • The deadline for a corporation’s tax return is one year after the end of its accounting period.
  • Corporation tax must be paid before the return is due; however, you should prepare the return to know the amount to pay.

Companies must file their annual reports with Companies House nine months after the end of their fiscal year. Companies House and HMRC will notify you of the various filing deadlines within the first year.

Many opt for simplicity by using the same year-end for statutory accounts and company tax.

Corporation tax filing and payment deadlines
Accounting year-end date: 31/12/2022

Accounts to Companies House: 30/09/2023

Corporation Tax: 01/10/2023

Tax return due: 31/12/2023

What is the deadline for UK corporate tax return?
Your tax return must be filed within a year after the conclusion of the accounting period it covers. If you miss the filing deadline, you’ll be subject to a late filing penalty. Your Corporation Tax bill must be paid by a specific deadline, which is typically nine months and one day after the end of a fiscal quarter.

What is the deadline for CT600?
Companies must file their tax returns with HMRC, and the deadline for doing so is one year after the end of the accounting period covered by the return.

How many months after year-end is Corporation Tax due?
Typically, corporation tax payment is due nine months after the end of your corporation’s accounting period, coinciding with the deadline for filing corporation tax returns.

Companies house deadlines 2024-2025 tax years

Key Companies House Deadlines for the 2024-2025 Tax Years: Stay Ahead with This Essential Guide

What is the deadline for submitting accounts to Companies House for 2023-2024? All limited liability companies are legally required to submit annual accounts each year. Your accounting records should include an income statement, financial statements, transaction notes, a director’s report, an auditor’s report, and the contact details of the relevant company directors. Depending on your company’s size or other factors, you might not need to include all details listed.

Find out more

Upon incorporating a business, Companies House sets its financial year-end, which is the last day of the month of registration. Typically, the deadline to submit your financial statement is nine months after your accounting period ends, except for the first year.

Here’s how annual account due dates work: For example, if you incorporated your business on July 16, 2022:

  • Your initial accounts must be filed with Companies House no later than 21 months after registration, by April 15, 2024.
  • Subsequently, July 31st will mark your annual financial reporting date, with a filing deadline of April 30th, nine months later each year.
  • If you decide to change your accounting period, the due date for your second submission will be April 30, 2024, and then April 30th each subsequent year.
  • You may alter your accounting period as needed, up to a maximum extension of 18 months once every five years.

Failing to submit your accounts on time can result in penalties ranging from £150 to £1,500, depending on the delay.

Is there an extension for submitting annual reports to Companies House? You may request an extension from Companies House if extraordinary circumstances, like a fire destroying your records, prevent timely submission. This request must be made before the due date.

When are annual accounts due? Private companies typically must file accounts nine months after their fiscal year ends. For example, if your fiscal year ends on March 31, accounts should be filed by December 31.

What happens if you miss the Companies House deadline? Late submissions incur automatic penalties. Penalties double if accounts are late two years in a row. Consistent failure to submit accounts or confirmation statements may result in penalties and potential removal from the register.

Gm professional accountants 

How to Check a VAT Return on Xero Software reconciliation 2024

Step-by-Step Guide: Checking Your VAT Return Accurately on Xero Software

Introduction

For professionals in the financial sector, ensuring the accuracy and compliance of VAT returns is a crucial task. Xero, a leading cloud-based accounting software, offers a comprehensive and user-friendly platform for managing VAT returns efficiently. This article guides you through the steps to check a VAT return on Xero, ensuring that GM Professional Accountants and other financial experts can leverage this tool effectively for accurate tax reporting.

Find out more

Understanding VAT Returns in Xero

VAT (Value Added Tax) returns are mandatory reports that businesses must submit to HMRC, detailing the amount of VAT collected and paid. Xero simplifies this process by automating calculations and allowing for easy review and submission.

Step 1: Access Your VAT Return
  • Navigate to VAT Returns: Log in to your Xero account and select ‘Accounts’ from the menu, then click on ‘Reports’ and choose ‘VAT Returns’.
  • Select the Period: Choose the relevant period for which you want to check the VAT return.
Step 2: Review VAT Return Details
  • Check the Calculations: Xero automatically calculates the figures based on the transactions entered. Review these to ensure they match your records.
  • Verify Transactions: Ensure all sales and purchases with VAT implications are correctly recorded and categorised.
Step 3: Reconcile and Edit if Necessary
  • Reconcile Transactions: Cross-check each transaction against bank statements and invoices to ensure accuracy.
  • Make Adjustments: If you find discrepancies, you can edit transactions directly from the VAT return screen. Ensure you understand the implications of any changes made.

Tips for Accurate VAT Returns on Xero

  • Regularly Update Transactions: Keep your records up-to-date to avoid last-minute reconciliations.
  • Understand VAT Rates: Ensure you’re applying the correct VAT rates for different types of transactions.
  • Use the VAT Reconciliation Report: This report helps identify discrepancies between your VAT return and general ledger.

Cash flow forecast for bank loan 2024

Cash Flow Forecast for Bank Loans: Navigating Your Financial Future

Introduction:

When applying for a bank loan, one of the most crucial documents you can present is a cash flow forecast. This financial roadmap is not just a requirement; it’s a powerful tool in your arsenal, demonstrating your business’s potential to manage debts and maintain profitability. In this post, we’ll guide you through creating an effective cash flow forecast for your bank loan application, ensuring you present a solid case to your potential lenders.

Find out more

Understanding Cash Flow Forecasting:

A cash flow forecast is a detailed breakdown of the expected money coming into and going out of your business over a future period. It reflects all your anticipated receipts and payments, giving lenders a clear picture of your financial health and stability. For a bank loan, this forecast helps assess your ability to repay the loan, highlighting your financial planning and management skills.

Why Is Cash Flow Forecasting Critical for Bank Loans?

  1. Risk Assessment: Banks want to minimize their risks. A well-prepared forecast shows that you understand your market, expenses, and revenue streams, reducing the perceived risk of lending to you.
  2. Repayment Capacity: It demonstrates your business’s capacity to generate enough cash to cover loan repayments, alongside operational expenses.
  3. Financial Planning: It indicates that you are proactive in managing finances, an appealing trait for lenders who prefer lending to businesses with strategic financial planning.

Creating Your Cash Flow Forecast:

  1. Historical Analysis: Start with reviewing your past financial statements. Analyse trends in sales, expenses, and cash flow. This historical data provides a base for your projections.
  2. Revenue Projections: Estimate future sales based on market analysis, sales trends, and any expected changes like new product launches or seasonal variations.
  3. Expense Forecast: List all expected outflows, including operational costs, salaries, and loan repayments. Don’t overlook occasional or annual payments.
  4. Consider Scenarios: Prepare for best, expected, and worst-case scenarios. Banks appreciate a borrower who acknowledges uncertainties and plans for them.
  5. Regular Updates: A forecast is a living document. Update it regularly with actual figures to keep it relevant and accurate.

Annual return now overdue for charity 2023-2024

Preparing and Submitting Your Annual Return, Report, and Accounts:

  • Charity Commission Regulations: Understand the regulations for submitting your charity annual return, report, and accounts.
  • Preparation Steps: Get ready to submit your annual return by gathering necessary documents and following the Charity Commission’s guidelines.
  • Filing Online: Use the Charity Commission login to file your return. Access resources and templates for SORP and annual accounts.
  • AI Assistance: For additional help, including finance and tax queries, use the AI Bunny icon for guidance.
Find out more

Addressing Problems with Submissions:

  • New Login Issues: If you’re facing problems with the new login system for trustees, refer to the ‘My Charity Commission Account’ setup instructions and contact the provided email for help.
  • Deadline Concerns: If you anticipate delays, request a late submission exemption via email, citing the new system’s issues.
  • Persistent Follow-Up: If responses are delayed, continue following up and document communications for accountability.

Understanding Different Reports:

  • Annual Returns: Mandatory for all registered charities, submitted online.
  • Annual Reports: Required for all, with detailed guidance provided, but not always part of the online return for smaller charities.
  • Impact Reports: Not mandatory but beneficial for stakeholder engagement.

Charity Commission Login and Return Preparation:

  • Login Retrieval: Instructions for recovering lost login details.
  • Preparation for Small Non-Company Charities: Guidelines for simple returns under certain income and asset thresholds.
  • Preparation for Large or Company Charities: Directions for a full trustees’ annual return following SORP guidelines.

Annual Accounts Toolkit:

  • Charity Commission Resources: Utilize toolkits and guides (CC16 and CC17) for preparing your annual accounts.
  • Understanding Accounting Types: Clarify the difference between cash and accrual accounting to choose the right method for your charity.

This guide aims to streamline the process, provide clear steps, and anticipate common issues for a smoother submission experience.

Understanding the UK Death Tax in 2024: Navigating Inheritance Tax Changes

Understanding the UK Death Tax in 2024: Navigating Inheritance Tax Changes

Navigating the complexities of the UK’s death tax, formally known as Inheritance Tax (IHT), is crucial for individuals planning their estate for the year 2024. As financial and legal landscapes evolve, staying informed about these changes ensures efficient wealth management and the safeguarding of assets for future generations. This blog post offers a comprehensive guide to understanding and preparing for the UK death tax in 2024, focusing on recent changes, exemptions, and strategies for mitigation.

Find out more with our Estate planning to help your loved ones

Find out more

What is the UK Death Tax?

The UK death tax is a levy on the estate (property, money, and possessions) of someone who’s passed away. As of 2024, there are critical thresholds and regulations that dictate how much tax will be owed. The standard Inheritance Tax rate is 40%, charged only on the portion of your estate that’s above the £325,000 threshold. However, any wealth passed to a spouse or civil partner is typically exempt, and additional relief is available when your home is given to your children or grandchildren.

Changes in 2024

In 2024, it’s essential to be aware of any legislative amendments affecting the IHT. While the specifics of these changes can be complex, they might include alterations to the nil-rate band, changes in exemptions or reliefs, and adjustments due to inflation. Professional advice is crucial to navigate these changes effectively and ensure your estate planning is up-to-date.

Exemptions and Reliefs

Understanding the various exemptions and reliefs can significantly reduce your IHT liability. For instance, the residence nil-rate band provides an additional threshold when you leave your home to direct descendants. Additionally, gifts made more than seven years before your death are typically exempt from tax, with taper relief reducing the tax rate for gifts made between 3 and 7 years prior to death.

Planning and Strategies

Efficient tax planning is essential to minimize the IHT burden. This might involve:

  1. Gifts: Regularly gifting assets can reduce your estate’s value. Understanding the rules around gifting and potentially exempt transfers is vital.
  2. Trusts: Certain types of trusts can be used to pass assets out of your estate while still retaining some level of control over them.
  3. Life Insurance: A policy written in trust can provide funds to cover IHT liabilities without adding to your estate.
  4. Charitable Donations: Bequests to charities are exempt from IHT and can reduce the overall rate of tax on the rest of your estate.

Leveraging Professional Advice

The rules surrounding the UK death tax are complex and subject to change. Seeking professional advice from accountants specializing in estate planning and IHT can provide tailored strategies to minimize liabilities and ensure compliance. They can offer insights into the most recent changes, help in structuring your assets, and guide the preparation of necessary documentation.

Conclusion

In 2024, understanding and preparing for the UK death tax is more important than ever. With the right knowledge and strategies, you can navigate IHT effectively, ensuring your assets are passed on according to your wishes while minimizing the tax burden. Remember, early planning and professional guidance are key to successful estate management. Stay informed, consider your options, and consult with experts to secure your legacy and provide peace of mind for you and your loved ones.

How to Apply for a UTR Number contacting HMRC in 2024

How to Apply for a UTR Number from HMRC

Are you about to embark on a self-employment journey in the UK? It’s an exciting venture that offers you the freedom to work on your own terms. However, it also entails certain administrative responsibilities.

Find out more

One crucial aspect you shouldn’t overlook is fulfilling your tax obligations. As a self-employed individual, it’s essential to ensure your tax affairs are in order, and this begins with obtaining a UTR (Unique Taxpayer Reference) number from HMRC.

This unique tax reference number is vital for filing your tax returns and managing your tax matters effectively.

In this blog post, we will provide you with comprehensive insights into the UTR number, explaining what it is, who needs it, how to apply for one, and other essential details.

What Is a UTR Number?

A UTR number is a distinctive identifier issued by HMRC to each self-employed taxpayer for self-assessment returns. This 10-digit alphanumeric code typically ends with the letter “K.”

Once you’re registered, your UTR number will be referenced on various HMRC documents, including:

  • Previous self-assessment tax returns
  • Notice to file a tax return
  • Statement of account
  • Welcome to self-assessment letter (SA250)
  • Reminders for payment

Additionally, you can find your UTR on your self-assessment account on the HMRC website. When you opt for self-employment, it implies:

  • You are responsible for calculating your own taxes.
  • You do not enjoy the same benefits as employed individuals, such as holiday pay.
  • You must declare your earnings when filing tax returns.

To inform HMRC of your self-employed status, visit the government’s online registration portal, enter your email address, and complete the registration process.

Who Needs a UTR Number?

If you are in full-time employment, you typically do not need to apply for a unique tax reference, as HMRC usually deducts taxes automatically from pensions, savings, and wages.

However, if you engage in side hustles, such as drop shipping or other forms of untaxed income, it’s advisable to register with HMRC. This allows you to declare your additional income accurately.

Self-employed individuals are obligated to register for a UTR number since they are responsible for calculating taxes based on their profits and declaring their income.

Students also require a UTR number, especially if they work. The UK government mandates individuals of tax age to remit taxes to HMRC and national insurance contributions.

How to Get a UTR Number?

Obtaining a UTR number can be done through three methods:

  1. Register Online: Visit the HMRC website, enter your email address, click “Continue,” and answer the provided questions. HMRC will create your account, and within 10 days, you will receive a letter containing your unique 10-digit UTR number. This number is essential for filing tax returns. A separate letter will arrive with an activation code for your personal account. If the second letter is not received, you can obtain the activation code online. Activate your account within 28 days to avoid expiration. After activation, you can file your tax returns online, with your UTR number available in the self-assessment section or at the top right corner of your account summary.
  2. Apply by Post: Self-employed individuals can apply for a UTR number by sending a written request to HMRC. Keep in mind that this method may take longer, as several letters may be exchanged to gather additional information.
  3. Apply by Phone: To apply for your UTR number over the phone, contact the self-assessment hotline at 0300 200 3310. Although you may provide the required details by phone, HMRC may still direct you to apply online.

Information You Need to Claim a UTR Number

When requesting your UTR number from HMRC, be prepared to provide the following personal information:

  • Full name
  • Current address
  • Phone number
  • Email address
  • Date of birth
  • National Insurance number

Additionally, you’ll need to furnish details about your business or side hustle, including:

  • Business phone number
  • Type of business
  • Business address
  • Date when you started self-employment
  • Location, and more

What to Do if You Lose Your UTR Number?

If HMRC has already issued you a UTR number, but you cannot locate it, contact the self-assessment helpline at 0300 200 3310. The HMRC support team will request your National Insurance number to assist you. It’s best to have your National Insurance number readily available for a smoother process.

The Future of Cash Flow Forecasting 2024: Trends and Innovations

Exploring Tomorrow’s Finance: Innovations and Trends Shaping the Future of Cash Flow Forecasting

In the dynamic world of finance, the ability to predict future cash flows accurately is invaluable for businesses of all sizes. As we look ahead, the future of cash flow forecasting is being reshaped by rapid technological advancements, particularly in Artificial Intelligence (AI) and machine learning. This blog explores the cutting-edge trends and innovations set to revolutionize how companies manage their financial health.

Find out more

AI and Machine Learning: A New Era of Forecasting

The advent of AI and machine learning has ushered in a new era for cash flow forecasting. These technologies are not just transforming the accuracy of predictions; they are also making the process faster and more efficient. Machine learning algorithms can analyze vast amounts of data, including historical financial information, market trends, and economic indicators, to identify patterns and predict future outcomes with a level of precision that was previously unattainable.

Predictive Analytics: From Reactive to Proactive Management

Predictive analytics, powered by AI, is moving businesses from a reactive to a proactive stance. Instead of simply reacting to cash flow issues as they arise, companies can now anticipate them well in advance and take preemptive action. This shift not only helps in averting financial crises but also in capitalizing on potential opportunities, thereby driving strategic growth and competitive advantage.

Integration with IoT and Real-Time Data

The integration of cash flow forecasting tools with the Internet of Things (IoT) and real-time data is a game-changer. As devices and platforms become more interconnected, businesses can access real-time financial data from various sources. This immediate insight allows for more dynamic and responsive forecasting, enabling companies to make informed decisions swiftly in response to market changes.

Blockchain for Enhanced Security and Transparency

Blockchain technology is set to play a significant role in the future of cash flow forecasting. With its inherent security and transparency features, blockchain can provide a tamper-proof ledger for financial transactions. This development not only enhances the security of forecasting models but also builds trust among stakeholders by ensuring that the financial data is accurate and reliable.

Customization and Personalization through AI

As AI systems become more sophisticated, they can learn and adapt to the specific needs and patterns of individual businesses. This means cash flow forecasts can be highly customized and personalized, taking into account unique business models, industry-specific risks, and even the impact of seasonal fluctuations.

The Role of Big Data

The role of big data in shaping the future of cash flow forecasting cannot be overstated. By harnessing the power of big data, companies can improve the accuracy of their forecasts. Advanced analytics can process and analyze this data to uncover insights that were previously hidden, providing a more comprehensive understanding of cash flow patterns.

Challenges and Considerations

While these innovations are exciting, they also bring challenges. Issues such as data privacy, the need for skilled professionals to manage advanced technologies, and the potential for over-reliance on automated systems are just a few of the considerations businesses must address. Moreover, ensuring the quality and consistency of data used in these advanced models is crucial for maintaining accuracy.

Conclusion

The future of cash flow forecasting is bright and brimming with potential, thanks to the relentless pace of technological advancement. As AI, machine learning, and other innovations continue to evolve, they will provide businesses with unprecedented capabilities to predict and manage their financial futures. However, embracing these technologies requires not just investment but also a willingness to adapt and a thorough understanding of the underlying principles. For those ready to take the plunge, the rewards in terms of enhanced accuracy, efficiency, and strategic insight are substantial. As we move forward, the role of the finance professional will evolve alongside these tools, shifting from number-cruncher to strategic advisor, guiding businesses through the complex landscape of modern financial management.

Can you pay inheritance tax before you die? 2024

Pre-Death Inheritance Tax Planning: Can You Pay UK Inheritance Tax Before Death?

Inheritance tax in the UK cannot be paid before death, but you can strategically prepare for it. One effective method is taking out a life insurance policy and placing it in a trust. This ensures that the policy payout is not considered part of your estate for inheritance tax purposes. However, to determine if this approach is beneficial for your specific situation, it’s crucial to undertake comprehensive estate planning. This process assesses your entire financial situation and helps in making informed decisions about mitigating potential inheritance tax liabilities.

Find out more

In the United Kingdom, it is possible to take steps that might reduce the amount of inheritance tax (IHT) payable upon death, but you can’t technically pay the inheritance tax itself in advance. Here are some of the strategies often used:

  1. Gifts: People can give away assets or money during their lifetime, and these gifts can potentially be exempt from IHT if the giver survives for another seven years after making the gift. This is known as the “seven-year rule.”
  2. Trusts: Placing assets into certain types of trusts can also be a way to manage potential IHT liabilities. The tax treatment of trusts can be complex, and it depends on the type of trust and the circumstances.
  3. Life Insurance Policies: A life insurance policy, written in trust, can be used to provide funds to pay any IHT that is due on the death of the insured.
  4. Annual Exemptions and Small Gifts: There are allowances for small gifts and annual exemptions which, if used wisely each year, can reduce the potential IHT liability.
  5. Charitable Gifts: Gifts to charities are usually exempt from IHT.
  6. Business Relief: Some business assets, or shares in certain types of businesses, may qualify for Business Relief which can reduce or eliminate IHT on these assets.
  7. Agricultural Relief: This can apply to reduce IHT on the value of agricultural property.

It’s important to consult with a financial advisor or a tax specialist for personalized advice, as inheritance tax planning can be quite complex and depends heavily on individual circumstances. Additionally, tax laws and regulations are subject to change, so staying informed about the current rules is crucial.

2024 Budgeting and Forecasting: Key Strategies for UK Limited Companies with Accountant Support Amidst Rising Costs

Key Strategies for UK Limited Companies with Accountant Support Amidst Rising Costs

As UK limited companies brace for the challenges of 2024, effective budgeting and forecasting have never been more crucial. With rising costs impacting various sectors, these businesses must adopt robust strategies to maintain financial health. Accountants play a pivotal role in this landscape, offering expertise that can be the difference between thriving and merely surviving.

Understanding the Economic Landscape of 2024

The economic environment in 2024 presents a unique set of challenges for UK limited companies. The rising cost of living and operational expenses significantly impact how businesses plan their finances. Inflationary pressures and market uncertainties require a more dynamic approach to budgeting and forecasting. Traditional methods may no longer suffice; instead, adaptive and forward-thinking strategies are necessary.

The Role of Accountants in Navigating Financial Complexities

Accountants are more than just number-crunchers; they are strategic partners in financial planning. Their expertise in analysing financial trends and market data is invaluable for limited companies facing uncertain economic conditions. By collaborating with a professional accountant, businesses can gain insights into cost-saving measures, tax-efficient practices, and investment opportunities.

Budgeting with Precision

Budgeting in 2024 requires a balance between flexibility and precision. Accountants can help set realistic budgetary goals, ensuring expenses are aligned with revenue projections. They can identify areas where costs can be cut without compromising operational efficiency. This careful planning is crucial, especially for businesses already feeling the pinch of increased costs.

Forecasting for the Future

Forecasting is not just about predicting revenue; it’s about preparing for various scenarios. Accountants can assist in creating multiple forecast models based on different market conditions. This approach allows businesses to be prepared for any economic situation, whether it’s a downturn or an unexpected opportunity for growth.

Embracing Technology for Efficient Financial Management

In the digital age, leveraging technology for financial management is non-negotiable. Accountants can guide companies in choosing the right software solutions for budgeting and forecasting. These tools offer real-time data analysis, which is essential for making informed decisions quickly. Cloud-based accounting software, for instance, provides accessibility and collaboration features that are vital in today’s fast-paced business environment.

The Human Element: Beyond the Numbers

While data and technology are important, the human element in financial planning should not be overlooked. Accountants bring a level of understanding and insight that purely digital solutions cannot replicate. Their ability to interpret data in the context of the company’s specific situation adds a layer of personalisation and effectiveness to the financial planning process.

Final Thoughts

As we move through 2024, UK limited companies must adapt to an evolving economic landscape. Budgeting and forecasting are no longer just annual exercises; they are continuous processes that require attention and expertise. With the support of skilled accountants, businesses can navigate these turbulent times, making informed decisions that not only safeguard their present but also pave the way for a prosperous future.

Effective Budgeting Strategies for Charities: A Guide by an Accountant

Optimising Financial Management for Non-Profits: An Accountant’s Blueprint guide for Charity Budgeting

In the complex financial landscape of the UK, charities face unique challenges in managing their finances. Effective budgeting is crucial for these organizations to maximize their impact while maintaining financial stability. As accountants, it’s essential to understand the nuances of budgeting for charities and provide tailored advice that aligns with their specific needs.

Find out more

Understanding the Charity Sector’s Financial Environment

The UK charity sector is diverse, encompassing a wide range of organizations with varying financial structures and funding sources. This diversity necessitates a flexible approach to budgeting. Charities often rely on donations, grants, and fundraising events, making their income streams less predictable than those of for-profit entities. Therefore, a key aspect of effective charity budgeting is creating a comprehensive income projection that accounts for this variability.

Implementing Zero-Based Budgeting

Zero-based budgeting is a highly effective strategy for charities. This method involves building a budget from scratch each year, justifying each expense, rather than basing it on previous years’ budgets. This approach encourages charities to critically evaluate their spending, ensuring that every pound is allocated toward furthering their mission. It also allows for greater adaptability in responding to changing financial circumstances or strategic priorities.

Prioritizing Expenditure

Charities must be particularly mindful of their expenditure to maintain the trust of donors and stakeholders. This involves not only minimizing unnecessary expenses but also strategically investing in areas that will enhance the charity’s effectiveness. For instance, spending on marketing and fundraising can be vital for generating future income. Accountants should guide charities in identifying and prioritizing these strategic investments.

Building a Contingency PlanGiven the unpredictability of their income, charities should have a robust contingency plan. This includes maintaining a reserve fund to cover essential costs during periods of reduced income. The size of this fund will vary depending on the charity’s size and stability of income, but a general guideline is to have enough to cover several months of operating costs.

Enhancing Transparency and Accountability

Transparency in budgeting and financial reporting is crucial for charities to maintain credibility and public trust. Accountants can play a key role in ensuring that budgets are not only well-planned but also clearly communicated to stakeholders. This includes regular, detailed financial reports and clear explanations of how funds are being used to advance the charity’s objectives.

Integrating Technology for Efficiency

Leveraging technology can significantly enhance the efficiency and accuracy of the budgeting process. Accounting software specifically designed for the charity sector can help track income and expenditures, automate financial reporting, and provide valuable insights into financial trends. This technology investment can lead to more informed decision-making and better financial management.

Conclusion

Effective budgeting is vital for the success and sustainability of charities in the UK. By understanding the unique financial environment of the charity sector, implementing zero-based budgeting, prioritizing strategic expenditures, building a contingency plan, enhancing transparency, and integrating technology, accountants can provide invaluable guidance to these organizations. Through these strategies, charities can not only maintain financial stability but also maximize their impact, making every pound count towards their noble causes.

Turnover past Vat £85,000 threshold Temporarily 2023/2024

Understanding VAT Thresholds: Navigating Temporary Turnover Exceedance in 2023/2024

Here’s a summary of the information regarding VAT (Value-Added Tax) in the UK for the fiscal year 2022/2023 and looking forward into 2024:

Find out more
  1. Charging VAT for Turnover Below £85,000: If your business’s VAT-taxable turnover is less than £85,000, you are not required to register for VAT. However, you can voluntarily register if you choose.
  2. Temporary Exceeding of VAT Threshold: If your business exceeds the VAT threshold temporarily, you can apply for a registration exception. This requires writing to HMRC with supporting documents to demonstrate that your VAT taxable turnover will not exceed the £83,000 deregistration threshold in the next year.
  3. VAT Threshold for 2023: The VAT threshold for 2023 is anticipated to remain at £85,000. If your cumulative taxable turnover equals or exceeds this amount in a 12-month period ending in 2022/23, you need to register for VAT by the end of the following month.
  4. Overlooking the VAT Threshold: If you exceed the VAT threshold and fail to register within 30 days, you may face penalties. The severity of the penalty depends on whether the oversight was intentional and if HMRC was notified by you or discovered it independently.
  5. VAT Threshold for 2024: The VAT registration and deregistration threshold is expected to stay the same at £85,000 until at least 31st March 2024.
  6. HMRC Checks on VAT Returns: HMRC can conduct compliance checks at your premises to ensure correct VAT payments or reclaims. They typically provide a 7-day notice before a visit.
  7. VAT for Sole Traders: Sole traders in the UK are subject to the same VAT threshold and conditions as other business structures. They are responsible for computing, charging, and transferring VAT to HMRC.
  8. Charging VAT on Shipping: VAT applies to most shipping activities in the UK, except for the delivery of zero-rated goods like basic foods, newspapers, children’s clothes, footwear, water, and books. Postage can be claimed as a business expense.

This information provides a comprehensive overview of VAT-related queries for businesses in the UK for the specified periods.

Inheritance Tax Planning in the UK for 2024-25: Navigating the New Landscape

Inheritance Tax Planning in the UK for 2024-25: Navigating the New Landscape

Inheritance tax (IHT) remains one of the most complex and often misunderstood aspects of financial planning in the UK. As we move into the 2023-24 tax year, it’s crucial for individuals and families to stay informed about the latest regulations and strategies for effective inheritance tax planning. This article aims to shed light on key considerations and provide practical advice to help you navigate the evolving landscape of IHT in the UK.

Find out more

Understanding Inheritance Tax in the UK

Inheritance tax is levied on the estate (property, money, and possessions) of someone who has passed away. As of the 2023-24 tax year, the standard IHT rate is 40% on assets above the £325,000 threshold. However, this is subject to various exemptions and reliefs, making effective planning essential.

Main Residence Nil-Rate Band (RNRB)

One significant element in inheritance tax planning is the Residence Nil-Rate Band (RNRB), which provides an additional threshold when a residence is passed on to direct descendants. For the 2023-24 tax year, the RNRB stands at £175,000, potentially increasing the IHT-free threshold to £500,000 for an individual.

Changes and Updates for 2023-24

It’s important to stay abreast of any legislative changes that could impact IHT planning. As of the time of writing, there have been no major alterations to the IHT regulations for the 2023-24 tax year. However, it’s always advisable to consult with a professional for the most current information.

Strategies for Inheritance Tax Planning

Effective IHT planning involves a range of strategies tailored to individual circumstances. Below are some key methods to consider:

Gifting Assets

One common approach to reduce an IHT liability is through gifting. Individuals can give away assets or money during their lifetime, potentially reducing the taxable value of their estate. Keep in mind the seven-year rule, where gifts are potentially exempt from IHT if the donor lives for seven years after making the gift.

Trusts

Setting up a trust can be an effective way to manage and protect assets, potentially reducing IHT liability. Trusts can be complex, so it’s crucial to seek expert advice to ensure they are set up correctly and align with your financial goals.

Life Insurance Policies

A life insurance policy, written in trust, can help offset any IHT liability by providing a lump sum outside of your estate. This can be particularly useful in providing funds to pay any IHT due without impacting the assets in the estate.

Business Relief

For business owners, Business Relief can provide significant reductions in IHT on business assets. This relief ranges from 50% to 100%, depending on the type of assets.

Charitable Donations

Donations to charity are exempt from IHT, and if you leave at least 10% of your net estate to charity, it can reduce the IHT rate on the rest of your estate from 40% to 36%.

Conclusion

Inheritance tax planning is an integral part of financial management. By understanding the current laws and utilizing effective strategies, you can ensure that your assets are passed on to your loved ones with minimal tax implications. It’s always advisable to consult with a professional accountant or tax advisor to tailor a plan that suits your specific needs and circumstances.

At GM Professional Accountants, we specialize in providing bespoke tax advice and planning services. Contact us to learn how we can assist you with your inheritance tax planning needs and help secure your financial legacy.

Inheritance tax estate planning 2024-2025

What is the Inheritance Tax Threshold for 2023/24?

For the tax year 2023/24, the Inheritance Tax threshold for individuals is £325,000, also known as the nil rate band. This amount is expected to remain unchanged until 5 April 2028.

Find out more

In simple terms, the nil rate band represents the value of property, money, personal possessions, and shares that can be passed on tax-free when someone passes away.

Amounts exceeding the nil rate band are typically subject to a 40% tax. However, certain circumstances may qualify for tax relief, potentially increasing the threshold and reducing the tax payable. Examples include:

  • Gifts to a spouse or civil partner, which are tax-free, potentially resulting in a combined nil rate band of up to £650,000.
  • Gifts of residential property to a child, which may benefit from an additional ‘residence nil rate band’ of £175,000.

Consulting with a specialist can help determine if additional tax relief applies in specific situations.

How Much is Inheritance Tax?

Inheritance tax is usually charged at 40% on the amount exceeding £325,000. For instance, an estate worth £425,000 would be liable for £40,000 in inheritance tax. However, if over 10% of the net estate is bequeathed to charity, the inheritance tax rate may be reduced to 36%.

Inheritance Tax Threshold for Married Couples

As individuals, each spouse or civil partner has a nil rate band of £325,000. Gifts transfers between spouses and civil partners are tax-free. If one partner passes away, their unused nil rate band automatically transfers to the survivor, effectively doubling their threshold to £650,000.

Does Every Estate Have to Pay Inheritance Tax?

Inheritance tax is based on the individual circumstances. If the estate value is below the available nil rate band of £325,000, no tax is owed. Additionally, leaving the estate to a spouse, civil partner, or a UK registered charity may result in no inheritance tax.

Does Everyone Have the Same Inheritance Tax Threshold?

Individuals can double their inheritance tax allowance to £650,000. This occurs when a married person leaves their entire estate to their spouse, passing their unused allowance to the surviving partner.

Who Pays Inheritance Tax?

The executor, if there’s a will, or the administrator, if there isn’t, is responsible for paying the inheritance tax from the estate. Professional probate services can assist in handling this process.

5 Ways to Pay Less Inheritance Tax

  • Leaving your assets to a spouse or civil partner.
  • Leaving residential property to children, potentially benefiting from the Residence Nil Rate Band.
  • Donating 10% of the estate to charity, reducing the inheritance tax rate from 40% to 36%.
  • Utilizing a legal document called a deed of variation to change a will for tax efficiency.

When Do You Need to Pay Inheritance Tax?

Ideally, inheritance tax should be paid by the end of the sixth month after the loved one’s death to avoid interest and potential late payment penalties. If unable to pay in one go, options such as 10 equal instalments are available, with the first instalment due at the end of the sixth month. Applying for probate promptly is crucial to gain access to the estate. Professional probate services can offer support in this process.

Financial planning death checklist 2024

Optimise Your Financial Planning with the Ultimate Death Checklist for 2024

Make It Simple – Be Ready for the Unexpected

Facing the passing of a loved one is never easy. When the time comes, someone will need to navigate the process of handling the departed’s assets and managing their Estate. This can be an emotionally challenging and time-consuming task. Knowing where to begin can be especially tough, especially when you’re unsure of what the person’s Estate involves. To alleviate stress for your loved ones, take proactive steps during your lifetime to streamline this process.

Find out more

Here are some practical steps to ensure the smooth administration of your Estate:

  1. Create a Will: Clearly outline your wishes to simplify the Estate administration process. While creating your Will, also establish Powers of Attorney.
  2. Maintain a List of Assets and Debts: Keep a record, either electronically or on paper, of all your assets and debts. Include details like bank accounts, shareholdings, property addresses, insurances, pensions, and more. Regularly update this list.
  3. Document Gifts Made in the Last 7 Years: Keep a record of any gifts you’ve given in the past seven years.
  4. Preserve Information on a Deceased Spouse: If your spouse passed away before you, keep copies of their Probate, Inheritance Tax Return, and Will. This can help reduce Inheritance Tax on your Estate.
  5. Maintain a Contact List: Compile a list of organizations, clubs, charities, friends, and professionals that should be notified of your passing. Include social media sites if applicable.
  6. Assess Inheritance Tax Liability: Determine whether your Estate may be subject to Inheritance Tax and take steps to mitigate it if necessary.
  7. Inform Executors and Keep Documents Accessible: Ensure your Executors know where your Will, official papers, and lists are kept. Consider providing them with copies for reference.
  8. Handle Online Account Access: While maintaining the security of your online accounts, consider options for providing access to Executors. This could involve storing important password information with a trusted party or using password manager software.
  9. Get an estate plan to forecast any future liabilities and how to mitigate them. Here at GM accountant we guide you and provide you with options,

Regularly review and update your Will and lists to keep them current. By taking these actions now, you’ll significantly ease the burden on your loved ones during a challenging time.

Community club non profit charity accountants guide

Accounting for Not-For-Profits and Community Interest Companies

Managing finances for not-for-profit organizations and Community Interest Companies (CICs) requires a distinct approach compared to profit-oriented entities. To unravel the complexities, it’s crucial to explore the various forms of charitable organizations.

Find out more

How are Non-Profit Organizations Different from Businesses?

In essence, the objectives of an organization guide decision-making. While businesses typically aim to turn a profit, charities, not-for-profits, and CICs are tailored to address more specific societal needs. This distinction influences their flexibility and organizational structure.

For instance, a charity focused on providing audio books cannot abruptly transition into organizing a bicycle race unless aligned with its core objectives. Unlike conventional businesses, these organizations are structured in accordance with their mission, a critical factor in their operation.

Are Charities and Not-For-Profits the Same Thing?

Although the terms are often used interchangeably, not-for-profit organizations may not necessarily be registered charities. The latter must adhere to the Charity Commission’s regulations, while not-for-profits have more flexibility in their operations.

  • A registered charity is always a non-profit organization.
  • Not all not-for-profit organizations are registered charities.

Understanding Not-For-Profit Organizations

The term ‘not-for-profit’ broadly encompasses organizations established to address public interest issues. Their activities primarily benefit the community rather than generating individual or shareholder financial gain. These organizations may focus on projects such as providing arts facilities, sports clubs, or running food banks.

Not-for-profits deviate from traditional profit-driven businesses. Even a regular limited company can choose to operate as a not-for-profit, utilizing profits to advance their charitable objectives rather than distributing dividends to shareholders.

Community Interest Company (CIC) Explained

A Community Interest Company (CIC) is a limited company with additional features, operating for the community’s or a specific subsector’s benefit. Considered a Public Benefit Entity (PBE), a CIC can make profits, but there are constraints:

  • Up to 35% of profits can be allocated to shareholder dividends.
  • At least 65% of profits must be utilized for community purposes.

Distinguishing CICs from Charities

CICs and registered charities are distinct entities; an organization can be one or the other but not both. Unlike charities, CICs aren’t bound by Charity Commission rules, allowing them broader aims. Charities may establish CIC subsidiaries for managing commercial activities, forming joint ventures to achieve mutual goals with public bodies.

Tax Returns for Charities, CICs, and Not-For-Profits

Reporting requirements hinge on an organization’s structure and charitable status. Non-registered charities must submit tax returns, while registered charities only do so for income not qualifying for tax relief. The type of tax return varies based on legal structure—Company Tax Returns for CICs, regular companies, and charities as limited companies or unincorporated organizations.

Additional reporting, such as annual returns for charities with income over £10,000 or separate reports for CICs, may apply.

Record-Keeping for Not-For-Profits

All organizations, regardless of purpose or structure, must maintain accounting records. While businesses adhere to Financial Reporting Standards (FRS), registered charities follow the Statement of Recommended Practice (SORP). This recognizes the unique nature of charitable activities and impacts reporting requirements.

Addressing Specifics in Not-For-Profit Accounting

Differentiating not-for-profits from businesses involves considerations such as:

  • Categorizing funds as restricted or unrestricted.
  • Adhering to reporting obligations for funds allocated for specific purposes.
  • Accounting for expenses in detail, especially when donors expect transparency in fund utilization.

Navigating these intricacies ensures accurate financial management for not-for-profits and CICs, fostering transparency and accountability.


Feel free to let me know if you’d like any further improvements or if there’s anything specific you’d like to focus on!

Inheritance tax planning for unmarried couples calculation

Inheritance Tax Guide: Navigating Complexities for Unmarried Couples with Expert Advice

Navigating inheritance tax can be complex, particularly for unmarried couples. Distinct rules apply to married or civil partnered couples compared to those who cohabit without formalizing their relationship. Our team of lawyers understands the intricacies of this matter and is dedicated to assisting you in planning your family’s financial future.

Find out more

Succession planning extends beyond drafting a will; we provide comprehensive advice on lifetime gifts, family trusts, shared business ownership, and various tax implications, including inheritance tax, capital gains tax, income tax, and stamp duty land tax.

Key points to know:

1. Understanding Inheritance Tax:

  • Inheritance tax is levied on the estate of a deceased person, comprising assets like cash, investments, property, business interests, vehicles, and life insurance payouts, minus debts.
  • No tax is typically payable if the estate value is below £325,000, known as the “nil rate band.”
  • Transferring your home to children or grandchildren can raise the inheritance tax threshold to £500,000.

2. Special Rules for Married Couples and Civil Partnerships:

  • Assets left to a spouse or civil partner, residing in the UK, are exempt from inheritance tax.
  • Unused thresholds can be transferred between spouses, allowing a tax-free limit of up to £1 million for married couples.
  • Unfortunately, these advantages do not extend to unmarried or cohabiting couples.

3. Joint Ownership and Inheritance Tax:

  • For unmarried partners owning assets jointly, especially residential property, the tax implications depend on the type of ownership (joint tenants or tenants in common) and the existence of a will.
4. Joint Tenancy and Inheritance Tax:
  • Inheritance tax is applicable on the deceased joint tenant’s share, with no exemptions for unmarried couples.
  • Unlike married couples, cohabiting couples lack special rules to reduce or eliminate inheritance tax.
5. Tenants in Common and Inheritance Tax:
  • Inheritance tax considerations for tenants in common are more intricate, with tax liability contingent on the estate’s overall value.
  • Without a will, a partner’s share goes to their relatives, and the unmarried partner retains entitlement only to their current share of the property.

For personalized advice and assistance in addressing your unique circumstances, please contact our main consultant:

How to avoid Inheritance tax using trusts in 2024

Unlocking Financial Freedom: Navigating Inheritance Tax with Trusts in 2024

Introduction:

In the ever-evolving landscape of financial planning, individuals and families in the United Kingdom are increasingly turning to trusts as a strategic tool to mitigate the impact of inheritance tax. In this comprehensive guide, we will delve into the intricacies of inheritance tax planning and explore how establishing a trust can be a powerful solution to safeguard your assets and ensure a smart transition for your loved ones.

Find out more

Understanding Inheritance Tax:

In the UK, inheritance tax is a levy imposed on the estate of a deceased person. While it is an integral part of the tax system, it can often lead to a substantial reduction in the value of the inheritance passed on to beneficiaries. The current inheritance tax threshold is £325,000, and anything above this amount is taxed at a rate of 40%. For high-net-worth individuals, this can translate into a significant financial burden for their heirs.

The Role of Trusts when considering Inheritance Tax Planning:

A trust is a legal arrangement that allows individuals (known as settlors) to transfer assets to a separate entity (the trust) for the benefit of specific individuals or purposes (the beneficiaries). By establishing a trust, individuals can exercise greater control over the distribution of their assets while simultaneously reducing their exposure to inheritance tax.

Key Strategies to Avoid Inheritance Tax with a Trust:

  1. Lifetime Gifts and Potentially Exempt Transfers (PETs): One effective strategy is to make lifetime gifts, transferring assets into a trust during your lifetime. While these transfers may be subject to inheritance tax, they can fall outside the taxable estate if the settlor survives for at least seven years after making the gift. These are known as Potentially Exempt Transfers (PETs), and they become completely tax-free if the settlor survives beyond the seven-year period.
  2. Establishing Discretionary Trusts: Discretionary trusts offer flexibility in distributing assets among a class of beneficiaries, providing the trustees with the authority to decide when and how to distribute the assets. By placing assets in a discretionary trust, settlors can reduce the taxable value of their estate, as the assets technically no longer belong to them.
  3. Using Business Property Relief (BPR) and Agricultural Property Relief (APR): Certain types of assets, such as qualifying business assets and agricultural property, may be eligible for relief from inheritance tax. Placing these assets in a trust can help maximize the relief available and minimize the overall tax liability.
  4. Life Insurance Policies and Trusts: Settlors can also consider using life insurance policies as a means to fund the trust. By assigning the policy to the trust, the proceeds can be distributed tax-free to beneficiaries, providing an additional layer of financial security.

Conclusion:

In conclusion, navigating the complexities of inheritance tax planning in the UK requires a strategic approach, and establishing a trust can be a powerful tool in this endeavour. By utilizing the various strategies outlined above, individuals and families can proactively protect their wealth, ensure the financial well-being of their loved ones, and ultimately leave a lasting legacy without the burden of excessive taxation. As with any financial decision, it is advisable to seek professional advice to tailor a plan that aligns with your specific circumstances and goals.

How to prepare a annual return charity commission trustees form

About Charity Trustees’ Annual Reports

Your trustees’ annual report serves as a crucial tool for conveying your charity’s activities to various stakeholders, including potential funders and beneficiaries.

If your charity is registered in England or Wales, you are required to prepare a trustees’ annual report along with your accounts. This report informs people about:

  • Your charity’s work
  • The sources of your funds
  • How you’ve allocated your funds in the past year
Find out more

For small non-company charities with an income under £500,000 (and assets below £3.26 million), a concise report should include:

  • Charity details: name, registration number, address, and trustee names
  • Organizational structure and management information, including trustee recruitment
  • Activities and objectives in the past year
  • Achievements and performance, emphasizing public benefit
  • A financial review, including debts and your reserves policy if applicable
  • Details of funds held as a custodian trustee

You have the option to add more detail to your report, but it only needs to be submitted to the commission with your annual return if your income exceeds £25,000 or upon request.

For larger or company charities, a comprehensive trustees’ annual report is necessary if your income exceeds £500,000 (or £250,000 with assets over £3.26 million) or if your charity is a company or CIO. Follow the guidelines outlined in SORP, and remember to upload a PDF copy with your annual return.

Charities’ SORP provides a framework for accounting and reporting to meet legal requirements, ensure consistency in accounting standards, and present a true and fair view. Depending on your charity type, use Charities SORP (FRS 102) or other specific SORPs.

Reporting on your charity’s public benefit is mandatory. For income under £500,000, you have flexibility in reporting, but at a minimum, include your charitable purposes, activities, and adherence to the commission’s public benefit guidance. For income exceeding £500,000, add information on your strategy, significant activities, and achievements in line with your purposes.

Annual Return Submission:

Submit your annual return to the Charity Commission within 10 months of your financial year end. Focus on reporting income and spending, answering questions in the annual return, without the need for additional documents.

Charities’ Annual Report Requirement:

All charities must maintain accounting records and prepare accounts for each financial year. Most registered charities must also prepare an annual report.

Submitting Annual Accounts to Charity Commission:

To submit annual accounts, create a My Charity Commission Account with a unique email address and password. Sign in to submit your charity’s annual return using your personal login information.

Inheritance tax planning for single person for the UK

Strategic Inheritance Tax Planning for Single Individuals in the UK: A Comprehensive Guide to Optimize Your Estate

Inheritance tax (IHT) is a topic that often evokes uncertainty and concern, particularly for single individuals in the United Kingdom. Planning for the future is a crucial aspect of financial management, and understanding how inheritance tax works is essential to ensure that your hard-earned assets are passed on efficiently to your chosen beneficiaries. In this blog post, we will explore the intricacies of inheritance tax planning tailored specifically for single individuals in the UK.

Find out more

 

IHT tax

Understanding Inheritance Tax:

Inheritance tax is a levy imposed on the estate of a deceased person, and it is payable on the value of assets exceeding a certain threshold. As of my knowledge cutoff in January 2022, the standard threshold is £325,000. However, for those with a property, an additional residence nil-rate band of up to £175,000 may apply, bringing the potential total threshold to £500,000.

For single individuals, the absence of a spouse or civil partner can pose unique challenges in terms of tax planning. Here are some key considerations to keep in mind:

  1. Utilizing the Nil-Rate Band: Single individuals should be aware of the standard nil-rate band and the potential residence nil-rate band. Strategies such as gifting and careful estate planning can help maximize the use of these thresholds.
  2. Lifetime Gifts: Making gifts during your lifetime can be an effective way to reduce the value of your estate for inheritance tax purposes. However, it’s crucial to be aware of the seven-year rule, which states that gifts made within seven years of death may still be subject to inheritance tax.
  3. Tax-Efficient Investments: Consider investing in assets that qualify for Business Relief (BR) or Agricultural Relief (AR). These reliefs can significantly reduce the taxable value of certain assets, providing a more tax-efficient approach to estate planning.
  4. Setting up Trusts: Trusts can be a powerful tool for single individuals to manage their estate and potentially reduce their inheritance tax liability. Seek professional advice to understand the different types of trusts available and their implications.
  5. Reviewing and Updating Wills: Ensure that your will reflects your current wishes and takes advantage of available tax exemptions. Regularly reviewing and updating your will is crucial, especially if your financial situation or family circumstances change.
  6. Consider Professional Advice: Inheritance tax planning can be complex, and seeking advice from Gm professional accountants IHT specialist is highly recommended. They can help tailor a strategy that aligns with your specific circumstances and goals.

 

Navigating inheritance tax as a single individual in the UK requires careful consideration and proactive planning. By understanding the various strategies available, such as utilizing nil-rate bands, making lifetime gifts, investing in tax-efficient assets, setting up trusts, and regularly reviewing your will, you can work towards minimizing the impact of inheritance tax on your estate. Professional advice is invaluable in crafting a personalized plan that ensures your assets are passed on to your chosen beneficiaries in the most tax-efficient manner possible.

Essential Guide: Correcting VAT Error for Making Adjustment 23-24

Mastering VAT Compliance: How to Correct Errors and Make Seamless Adjustments

If you’ve made an error in a previous VAT return that meets specific criteria, you can rectify it by adjusting a future VAT return, as outlined in HMRC’s VAT notice 700/45. To be eligible for correction:

  1. The mistake must have occurred in a return for an accounting period ending less than 4 years ago.
  2. The net value of the error (VAT overpaid minus underpaid) should be below the HMRC reporting threshold of £10,000.
  3. The error must not be intentional (deliberate errors must be reported to HMRC).
  4. The net value of the error must be between £10,000 and £50,000, but less than 1% of the sales reported in box 6 of the VAT return for the period in which the mistake was discovered.
Find out more

Calculate the net value of errors by subtracting any VAT overpaid from any VAT underpaid. If your mistake meets these criteria, amend it in your next VAT return by adding the net value to either Box 1 (tax owed to HMRC) or Box 4 (tax due to your business).

For errors not meeting these criteria, contact HMRC to report them. When in doubt, seek advice from an accountant. Additional information on the Notice 700/45 VAT adjustment process is available on GOV.UK.

Reportable Errors: Not all errors can be corrected by amending a VAT return. Report errors falling into the following criteria to HMRC:

  • Errors with a net value above the reporting threshold.
  • Errors made more than 4 years ago.
  • Deliberate errors (note: deliberate or careless errors may incur HMRC penalties).

Notification of Errors to HMRC: If you need to report a VAT mistake to HMRC that falls outside the criteria for a VAT adjustment, use a VAT652 form. You can fill it out online at GOV.UK, download a printable version, or request a paper form by calling the HMRC helpline on 0300 200 3700.

It’s also possible to report an error to HMRC without using form VAT652, but completing the form will streamline the process for both you and HMRC. If you can’t access the form, write directly to HMRC to report a VAT error at: [Include the appropriate HMRC address].

Correcting a Mistake on Your VAT Return

If you’ve identified an error on your VAT return, especially if it means you’re owed a refund, follow these steps to make the necessary adjustments.

  1. Update Box 4: If the error results in a VAT refund, include the net value in Box 4 of your return.
  2. Keep Detailed Records: It’s crucial to maintain a record of key information, including the date of the error, the date you made the adjustment, and specific details about the mistake.
  3. Adjust Your VAT Records: Ensure that your internal VAT records are also updated to reflect the accurate figures.

Can I Edit a VAT Return After Submission?

If you’ve submitted your VAT return and later realize a mistake, there’s no need to panic. You have options to correct the error:

  1. Manual Correction: You may be able to manually correct the mistake on your submitted return.
  2. Report to HMRC: Alternatively, you can report the error to HMRC, seeking their guidance on the necessary corrective actions.

Time Limit for VAT Error Correction

It’s important to note that there is a specific time limit for correcting errors in your VAT return. You have a window of 4 years from the due date of the return for the prescribed accounting period in which the error occurred, especially concerning under-claimed input tax.

Remember, staying calm and taking prompt corrective measures will help ensure your VAT records remain accurate and compliant with regulations.

Limited company Nursing agencies Vat concession Exempt No vat

Understanding the VAT Concession for Nursing Agencies and Umbrella Companies

In the wake of IR35 reforms and the growing prevalence of umbrella companies among NHS workers, confusion surrounding nursing agencies’ VAT responsibilities has become more prevalent. This confusion primarily revolves around the application of a concession and determining who bears the VAT burden: the end client, the agency, or the umbrella company. However, it’s crucial for recruiters to understand that the nursing agencies’ VAT concession does not apply to fully compliant umbrella companies

 

Find out more

What is the concession, and where does it apply?

This concession dictates that, under specific circumstances, nursing agencies and employment businesses are exempt from VAT accountability when providing certain healthcare workers:

  1. Registered nurses
  2. Unregistered nurses directly supervised by a registered nurse
  3. Unregistered nursing auxiliaries whose services are supplied to a hospital, hospice, or care home

The primary goal is to reduce the cost of medical staff. However, HMRC stipulates that the concession should only benefit those directly supplying nurses, excluding umbrella companies deemed too distant in the supply chain to qualify.

What are the issues, and how should compliant umbrella companies respond?

In the absence of the concession, recruitment agencies typically charge VAT when supplying staff to an end-hirer. This VAT is then transmitted down the chain, and the umbrella company remits it to HMRC upon receiving funds from the agency.

Before the IR35 changes, nurses with their limited companies enjoyed VAT exemption due to low company turnover—a scenario not applicable to umbrella companies.

Compliant umbrella companies must levy VAT, even if the concession relieves the agency from charging VAT to the end client. In such cases, a responsible umbrella provider would decline collaboration unless the agency agrees to pay the VAT. Any umbrella company claiming VAT exemption is misinformed.

Despite the concession being informal and not officially classified as an exemption, recruiters face immediate risks if the umbrella company neglects to charge VAT. In most instances, the VAT responsibility falls back on the recruiter as the worker’s supplier.

If an umbrella company charges VAT and the agency opts for the concession, they might forfeit the right to reclaim the VAT charges. Errors in VAT liability can lead to substantial debts and potential penalties from HMRC.

Do I have to register as self employed straight away

Do I have to register as self employed straight away

In the dynamic landscape of the United Kingdom’s workforce, the allure of self-employment has become increasingly appealing. Whether driven by a desire for autonomy, flexibility, or the pursuit of a passion, becoming self-employed in the UK is a viable and rewarding option. However, before embarking on the entrepreneurial journey, it’s crucial to understand the specific criteria that define and shape self-employment in the UK. 1. Legal Structure and Registration:

 

Self assessment
Were you self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on) ?
Were you a partner in a business partnership ?
Did you receive any income from savings, investments and £10,000 dividends ?
Did you have a total taxable income of more than £100,000 ?
Did you receive any foreign income ?
Did you receive any tips and commission ?
Did you have to pay the High Income Child Benefit Charge ? (Did you earn an income over £50,000)
Stay ahead in the world of finance with the latest tax updates and exclusive offers from GM Professional Accountants. opt in to receive personalized, timely information directly to your inbox. We're committed to keeping you informed and ahead of the curve

 

One of the first steps towards self-employment in the UK involves choosing an appropriate legal structure for your business. Sole traders, partnerships, and limited companies are the primary options. Sole traders operate as individuals, while partnerships involve two or more individuals sharing the responsibilities. Limited companies are distinct legal entities. Registering your business with the appropriate authorities, such as HM Revenue & Customs (HMRC), is a mandatory step to establish your self-employed status.

2. National Insurance Contributions: Self-employed individuals in the UK are required to pay National Insurance contributions to access benefits like the State Pension and the National Health Service (NHS). The amount of contributions varies based on your profits, and it’s essential to stay informed about the current rates and thresholds. Ensuring compliance with these contributions is vital for maintaining your self-employed status and securing future benefits.

3. Tax Obligations: Understanding and fulfilling your tax obligations is a critical aspect of self-employment in the UK. Keeping accurate financial records, submitting self-assessment tax returns to HMRC, and meeting deadlines are integral to a smooth and compliant self-employed journey.

4. Financial Management and Record-Keeping: Effective financial management is a cornerstone of successful self-employment. Keeping detailed records of your income, expenses, and receipts is not only a legal requirement but also crucial for monitoring your business’s financial health. Utilizing accounting software or hiring a professional accountant can streamline this process, allowing you to focus on growing your business without the burden of complex financial tasks.

5. Client Relationships and Marketing: Building and maintaining client relationships is a key criterion for success in self-employment. As a self-employed professional in the UK, actively marketing your services, networking, and delivering exceptional value to your clients are essential

In conclusion, self-employment in the UK is a rewarding journey that offers numerous benefits, but success requires a thorough understanding of the criteria that define this entrepreneurial path. By navigating legal obligations, managing finances diligently, and fostering strong client relationships, aspiring self-employed individuals can embark on a fulfilling and prosperous career in the UK’s vibrant business landscape.

Amending the corporation tax return after deadline limit 2023-2024

How to Amend Your Company Tax Return: Staying Compliant Made Easy

Introduction – How far back can you go?

Navigating the ever-changing landscape of tax regulations can be challenging for businesses. Occasionally, circumstances evolve, necessitating adjustments to your Company Tax Return. In this blog, we’ll delve into the key aspects of amending your return and explore the methods available to you. It’s crucial to remember that amending your return is subject to specific time constraints and potential penalties for errors. Let’s explore these details further.

Find out more

The 12-Month Deadline

The first and most critical aspect to bear in mind when contemplating amendments to your Company Tax Return is the 12-month deadline. Generally, changes must be made within 12 months of the filing deadline. Complying with this deadline is of utmost importance to avoid potential penalties imposed by HM Revenue and Customs (HMRC). Thus, staying organized and proactively addressing any required adjustments within this timeframe is essential.

UK Statutory accounts

Methods for Making Amendments

When it comes to amending your Company Tax Return, you have several methods at your disposal. The choice of method hinges on your preferences and specific circumstances:

  1. Commercial Software: Many businesses find using commercial tax software a popular and user-friendly option. These software packages often include intuitive interfaces and error-checking features to ensure accuracy. They can be especially beneficial for businesses with complex financial records.
  2. Paper Return or Written Request: If you favour a more conventional approach, you can opt to send a paper return or a written request to your company’s Corporation Tax office. This method may suit businesses with less intricate tax situations, but it may require additional processing time.
  3. HMRC Online Services: HMRC provides online services that may enable you to make changes to your Company Tax Return. Eligibility for this service may vary, so it’s essential to verify your qualifications. Online services are a convenient choice for tech-savvy individuals who prefer a digital approach.

Determining Eligibility for HMRC Online Services

To assess your eligibility for utilizing HMRC’s online services, refer to recent tax forms or correspondence from HMRC. These documents usually contain information regarding the Corporation Tax office’s address and contact information. You can also reach out to the HMRC helpline to receive guidance on utilizing online services and clarify any uncertainties.

Penalties for Errors

Maintaining vigilance when amending your Company Tax Return is crucial since HMRC may impose penalties for errors. The severity of these penalties varies based on the error’s nature, whether it was an inadvertent mistake or an intentional attempt to evade taxes. To steer clear of penalties, ensure that any amendments you make are accurate and supported by valid documentation.

Conclusion

In conclusion, amending your Company Tax Return is a necessary, sometimes unavoidable, process. Whether triggered by shifts in your financial situation or corrections of prior errors, the key to successful amendments lies in adhering to the 12-month deadline, selecting the most suitable method, and ensuring accuracy to prevent penalties.

Commercial software, paper returns, and HMRC’s online services are all viable options, contingent on your specific circumstances and preferences. Keep in mind to verify your eligibility for online services and seek guidance if required.

In the intricate realm of tax compliance, staying well-informed and adhering to the correct procedures is paramount. By comprehending the process of amending your Company Tax Return and the potential consequences of errors, you can guarantee that your business maintains compliance and avoids unnecessary penalties with ease.

when is capital gains tax payable inherited property Parents estate

Capitals gains tax payable on probate value of the estate and the increase

Capital Gains Tax (CGT) is a subject that often leaves property owners and heirs scratching their heads. Understanding the intricacies of when and how CGT applies to property that has appreciated in value since probate can be a challenging task. In this blog post, we will unravel the mystery and shed light on when CGT is payable on property in the UK that has seen an increase in value since the probate valuation.

Probate Valuation: The Starting Point

Probate valuation serves as the foundation for determining CGT liability when property is inherited. It’s the estimated market value of a deceased person’s assets, including property, at the time of their passing. This value is crucial because it sets the baseline against which any future gains are measured.

CGT and Property: The Basics

CGT is a tax levied on the profit made when you sell or dispose of an asset that has increased in value since you acquired it. When it comes to property, CGT becomes a relevant concern in two primary scenarios:

  1. Selling an Inherited Property: If you inherit property and decide to sell it, CGT may apply. The amount of CGT is calculated based on the difference between the probate value (the baseline) and the eventual sale price.
  2. Transferring the Property During Your Lifetime: If you inherit a property but decide not to sell it immediately and instead choose to transfer ownership, CGT can still be triggered when you eventually sell the property. The CGT liability is determined by the property’s value at the time of transfer and the value at the time of the actual sale.

When is CGT Not Payable on Inherited Property?

It’s important to note that not all inherited properties will incur CGT. There are certain exemptions and reliefs that can shield you from this tax:

  1. Principal Private Residence Relief: If you live in the inherited property as your primary residence, you may be eligible for Principal Private Residence Relief, which can exempt you from paying CGT.
  2. Annual Exemption: Everyone in the UK has an annual tax-free allowance for CGT. This allowance was £6000 for 2023-2024. This means that if your total gains, including the property, do not exceed this threshold, you won’t be liable for CGT.
  3. Letting Relief: If you have lived in the property at some point during your ownership and have let it out, you may qualify for Letting Relief, reducing the CGT liability..

Calculating CGT on Inherited Property

To calculate CGT on property that has appreciated in value since the probate valuation, you’ll need to follow these steps:

  1. Determine the property’s current market value at the time of sale or disposal.
  2. Subtract the probate value from the current market value. This is your capital gain.
  3. Deduct any allowable expenses, such as improvement costs or legal fees related to the sale.
  4. Calculate the tax based on your income tax band. As of September 2023, the rates were 10% for basic rate taxpayers and 20% for higher rate taxpayers.
  5. Apply any available reliefs or exemptions to reduce your CGT liability.

Conclusion

Capital Gains Tax can be a complex topic, especially when it comes to inherited property. Understanding when CGT is payable on property that has increased in value since probate is essential for ensuring that you meet your tax obligations and can make informed decisions about your property assets. Always consult with a tax professional or accountant for the most up-to-date information and personalized guidance based on your specific circumstances.

VAT Return Calculation of Standard, Exempt Input VAT 2023-2024

VAT Return Calculation in the UK: Understanding Standard and Exempt Input VAT

Introduction

When it comes to VAT (Value Added Tax) in the UK, businesses need to navigate the complexities of calculating input VAT, which is the VAT paid on goods and services purchased for your business. In this blog post, we’ll demystify the process of calculating input VAT for both standard-rated and exempt supplies, ensuring you have a clear understanding of how it impacts your VAT return.

Find out more

What is Input VAT?

Input VAT refers to the VAT paid by a business on its purchases. This VAT can usually be reclaimed, subject to certain rules, and is essential for managing your cash flow and ensuring you don’t pay more VAT than necessary.

Standard-Rated Supplies

Standard-rated supplies are goods and services that are subject to the standard rate of VAT in the UK, which is currently 20%. When you make purchases related to standard-rated supplies, you can usually reclaim the input VAT in full on your VAT return.

For example, if you purchase goods or services for £1,000 + £200 VAT, you can claim the entire £200 as input VAT, effectively reducing your overall VAT liability.

Exempt Supplies

Exempt supplies are goods and services that are not subject to VAT. Unlike standard-rated supplies, you cannot reclaim the input VAT paid on purchases related to exempt supplies.

For example, if you operate a business in the financial or healthcare sector and incur VAT on expenses related to these services, you cannot reclaim that input VAT on your VAT return.

Partial Exemption

In some cases, businesses may provide both standard-rated and exempt supplies. This situation is known as partial exemption. To calculate input VAT for partial exemption, you’ll need to apply a formula that considers both the standard-rated and exempt supplies.

The formula takes into account the proportion of standard-rated supplies to total supplies. You can then reclaim the input VAT that relates to your standard-rated activities.

Professional Advice

Calculating input VAT, especially when dealing with exempt and partially exempt supplies, can be intricate. It’s advisable to seek professional advice or use specialized accounting software to ensure accuracy and compliance with HMRC regulations.

Conclusion

Understanding how to calculate input VAT for standard-rated and exempt supplies is crucial for managing your business’s VAT liabilities. By reclaiming input VAT on eligible purchases, you can reduce your overall VAT payments, ultimately benefiting your bottom line.

Remember that input VAT calculations can become complex, especially in cases of partial exemption. Seeking professional guidance or using accounting software tailored to VAT calculations can help simplify the process and ensure compliance with HMRC rules.

Stay informed, keep accurate records, and make informed decisions to optimize your VAT return calculations and contribute to the financial success of your business.

VAT Return Due Date 2023 in the UK: Essential Information

VAT Return Due Date 2023 in the UK: Essential Information

Introduction

Understanding the VAT return due date in the UK is crucial for businesses of all sizes. Accurate VAT returns are not only essential for legal compliance but also for managing your finances effectively. In this blog post, we’ll delve into the VAT return due date for 2023 in the UK and provide you with the information you need to stay on top of your tax responsibilities.

What is VAT?

VAT, or Value Added Tax, is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is a significant source of revenue for the UK government and is administered by HM Revenue and Customs (HMRC).

VAT Return Overview

A VAT return is a form you submit to HMRC, typically on a quarterly basis, to report the VAT you’ve collected from customers and the VAT you’ve paid on business expenses. The difference between these two amounts is what you owe or what you’re entitled to claim as a refund.

VAT Return Due Date 2023

For the tax year 2023, the VAT return due date in the UK remains consistent with previous years. You are required to submit your VAT return and make any payment due by the following deadlines:

  1. March 31, 2023, for the VAT period ending February 28, 2023
  2. June 30, 2023, for the VAT period ending May 31, 2023
  3. September 30, 2023, for the VAT period ending August 31, 2023
  4. December 31, 2023, for the VAT period ending November 30, 2023

It’s essential to mark these dates in your calendar to ensure you meet your obligations and avoid any potential penalties.

Late Submission and Penalties

Failing to meet the VAT return due date can result in penalties and interest charges. HMRC takes compliance seriously, so it’s crucial to file your return on time. The penalty for late submission depends on how many times you’ve been late in the past 12 months, with increasing fines for repeat offenses.

How to Submit Your VAT Return

Submitting your VAT return in the UK is relatively straightforward. You can use HMRC’s online services, such as the Making Tax Digital (MTD) platform, or software that is compatible with MTD. Make sure to keep accurate records of your VAT transactions throughout the VAT period to ensure a smooth submission process.

Conclusion

Understanding the VAT return due date for 2023 in the UK is vital for businesses to maintain financial stability and comply with tax regulations. Remember the key dates: March 31, June 30, September 30, and December 31, and ensure that you submit your VAT return on time to avoid penalties. Staying organized and using digital tools can help simplify the process and keep your business on the right side of the tax authorities.

Stay tuned for more updates and insights on financial matters to help you navigate the complexities of running a successful business in the UK.

Rent a room allowance filing a self assessment tax return 2023

Rent a Room in Your Home: Tax Considerations and HMRC Requirements

Renting out a room in your home can be a great way to earn some extra income and make use of available space. Whether you’re a homeowner or a tenant, taking advantage of the UK government’s Rent a Room Scheme can make this process smoother. However, it’s essential to understand the tax implications and requirements when renting out a room in your home and submitting a tax return to Her Majesty’s Revenue and Customs (HMRC).

The Rent a Room Scheme Explained

The Rent a Room Scheme is a tax relief provided by HMRC to individuals who rent out a furnished room or part of their home. This scheme allows you to earn up to a certain threshold of tax-free rental income each year without having to report it on your tax return. As of my last knowledge update in September 2021, the threshold was £7,500 per year. It’s important to check the current threshold with HMRC, as it may have changed since then.

Here’s what you need to know about the Rent a Room Scheme:

1. Eligibility:

  • To qualify for the Rent a Room Scheme, the room you’re renting out must be part of your main residence, where you live most of the time.
  • If you’re a tenant, you should check with your landlord to ensure you have permission to sublet a room.

2. Income Limit:

  • The income limit, as mentioned earlier, is the maximum amount you can earn from renting out your room tax-free.
  • If your rental income exceeds this threshold, you will need to declare it on your tax return.

3. Reporting to HMRC:

  • If your rental income is below the threshold, you don’t need to report it to HMRC. The income remains tax-free.
  • If your rental income exceeds the threshold, you must report it on your Self Assessment tax return.

4. Expenses and Deductions:

  • Under the Rent a Room Scheme, you can’t deduct any expenses related to the room you’re renting out from your rental income.
  • However, if you have expenses that apply to the whole house (e.g., mortgage interest, council tax), you may be able to claim a proportion of these as expenses.

5. Other Tax Implications:

  • While the Rent a Room Scheme can be advantageous, it may impact your eligibility for other tax benefits, such as Capital Gains Tax (CGT) relief on the sale of your home.
  • It’s essential to consult with a tax professional to fully understand the implications for your specific situation.

Submitting a Tax Return with HMRC

If your rental income exceeds the Rent a Room Scheme threshold or you have other sources of taxable income, you’ll need to submit a Self Assessment tax return to HMRC. Here’s what the process generally involves:

1. Register for Self Assessment:

  • If you’re not already registered for Self Assessment, you’ll need to do so by October 5th following the tax year in which your income exceeded the threshold.

2. Gather Documents and Information:

  • Collect all relevant documents, including records of your rental income and any allowable expenses.

3. Complete the Tax Return:

  • Use the HMRC Self Assessment system to fill in your tax return. You’ll need to report your rental income, any other sources of income, and claim any applicable deductions or allowances.

4. Pay Any Tax Due:

  • If you owe tax on your rental income, you’ll need to make the payment by the deadline (usually January 31st following the end of the tax year).

5. Keep Records:

  • It’s crucial to maintain accurate records of your rental income and expenses, as HMRC may request evidence of these during an audit.

Conclusion

Renting out a room in your home can be a beneficial source of additional income. Understanding the rules and requirements of the Rent a Room Scheme and HMRC’s Self Assessment process is vital to ensure compliance with tax regulations. Consulting with a tax advisor or accountant can provide valuable guidance specific to your situation, helping you make the most of this opportunity while staying on the right side of the tax laws. Always remember to stay updated with the latest HMRC guidelines and tax thresholds to ensure you remain in compliance with current regulations.

Filing Tax Returns for High-Income Individuals: Earning £150k

Understanding the Changes to UK Self-Assessment Threshold for PAYE Taxpayers (2023-2024)

 

Introduction:

 

Welcome to our comprehensive guide on the recent changes to the UK self-assessment threshold for taxpayers taxed through PAYE (Pay As You Earn). In this blog post, we will explore the details of the revised threshold, its implications for taxpayers, and the criteria that may still require individuals to complete a self-assessment tax return. Additionally, we’ll discuss the importance of claiming income tax reliefs and provide guidance for seeking assistance with personal taxes. Let’s dive in!

 

Table of Contents:

 

Overview of the Self-Assessment Threshold Changes

  1. Previous Threshold: £100,000
  2. Revised Threshold: £150,000

 

Immediate Action for Affected Taxpayers

  1. No Action Required for 2022-2023 Tax Returns
  2. Self-Assessment Exit Letter for Ineligible Submissions

 

Circumstances Necessitating a Self-Assessment Tax Return

  1. Untaxed Income
  2. Income from Overseas Sources
  3. Business Partnership
  4. High Income Child Benefit Charge
  5. Self-Employment with Gross Income over £1,000

 

Utilizing the Government’s Self-Assessment Tax Return Checker

  1. How to Check if You Need to File a Tax Return
  2. Accessing the Online Tool

 

Leveraging Tax Returns for Income Tax Reliefs

  1. Understanding Income Tax Reliefs
  2. Claiming Reliefs for Pension Contributions
  3. Claiming Reliefs for Charity Donations

 

Seeking Assistance with Personal Taxes

  1. Contacting the Personal Tax Compliance Team
  2. Benefits of Professional Guidance

 

Conclusion:

In conclusion, the recent changes to the UK self-assessment threshold for taxpayers taxed through PAYE have important implications for individuals’ tax obligations. While the threshold has been raised to £150,000 for the tax year 2023-2024 onwards, it’s crucial to note that certain criteria may still require individuals to complete a self-assessment tax return. Untaxed income, income from overseas sources, business partnerships, liability for the High Income Child Benefit Charge, and self-employment with gross income over £1,000 are among the factors that necessitate filing a tax return.

 

To determine whether you need to file a self-assessment tax return, you can use the government’s online tool, “Check if you need to send a Self Assessment tax return.” Moreover, individuals should consider leveraging tax returns to claim income tax reliefs on payments such as pension contributions and charity donations, as this can result in significant savings.

 

If you require assistance with your personal taxes or have any questions regarding these changes, it is advisable to reach out to the Personal Tax Compliance team for professional guidance. Remember, staying informed and taking appropriate actions will ensure compliance with tax regulations and help you optimize your tax situation.

 

Thank you for reading our comprehensive guide on the changes to the UK self-assessment threshold for PAYE taxpayers. We hope this blog post has provided you with valuable insights and guidance

What is the role of advisory services?

What is accounting advisory services

Advisory services are an important aspect of the accounting profession. They are provided by accounting firms and professionals to help clients make informed business decisions and improve their financial performance. In this blog post, we will discuss the various advisory services offered by accounting firms, and how they can benefit businesses of all sizes.

What are Advisory Services for Accounting?

Advisory services are consultative services provided by accounting firms to their clients. They are designed to help clients make better business decisions and improve their financial performance. These services cover a wide range of topics, including risk management, financial planning, mergers and acquisitions, and business valuation.

Types of Advisory Services

  1. Risk Management: Accounting firms help clients identify and manage financial risks that may affect their businesses. This includes identifying potential risks and developing strategies to mitigate them. Accounting firms can also assist clients in developing internal controls to prevent financial fraud and other irregularities.
  2. Financial Planning: Accounting firms provide financial planning services to help clients achieve their financial goals. This includes developing a comprehensive financial plan, identifying investment opportunities, and managing cash flow.
  3. Mergers and Acquisitions: Accounting firms provide advisory services to clients who are involved in mergers and acquisitions. They can help clients identify potential acquisition targets, negotiate deals, and develop integration plans.
  4. Business Valuation: Accounting firms help clients determine the value of their businesses. This includes conducting a comprehensive analysis of financial data and market trends to determine a fair market value.

Benefits of Advisory Services

Advisory services offer numerous benefits to businesses of all sizes. Here are some of the key benefits:

  1. Improved Financial Performance: Advisory services help businesses improve their financial performance by identifying potential risks and developing strategies to mitigate them. This leads to improved profitability and cash flow.
  2. Informed Decision Making: Advisory services provide businesses with the information they need to make informed business decisions. This includes identifying investment opportunities, evaluating potential acquisitions, and developing strategic plans.
  3. Compliance with Regulations: Accounting firms help businesses comply with regulations and laws that may affect their financial operations. This includes tax laws, financial reporting requirements, and other regulatory issues.
  4. Enhanced Reputation: Advisory services help businesses build a positive reputation in their industry. This is because they are seen as responsible and ethical businesses that take a proactive approach to managing financial risks.

Conclusion

Advisory services are an important aspect of the accounting profession. They help businesses of all sizes make informed business decisions, improve their financial performance, and comply with regulations. Accounting firms provide a wide range of advisory services, including risk management, financial planning, mergers and acquisitions, and business valuation. If you are a business owner, consider working with an accounting firm to benefit from their advisory services and improve your financial operations.

Budget 2023 update for for construction companies

UK Budget Update 2023: What Construction Companies Need to Know

The UK government has recently released its budget for 2023, and it includes a range of measures that will affect businesses across various sectors. For construction companies in the UK, there are several key updates to be aware of. In this article, we’ll highlight the budget updates that matter most to construction companies and how they could impact your business.

Investment in Infrastructure

One of the significant updates in the budget is the government’s commitment to investing in infrastructure. The government has pledged to spend £650bn over the next five years on roads, rail, broadband, and other infrastructure projects. This investment is expected to create new opportunities for construction companies, particularly those focused on infrastructure projects.

To support this investment, the government is also providing additional funding for training and apprenticeships in the construction industry. This funding will help to address the skills shortage in the industry and support the development of a more skilled workforce.

Changes to Corporation Tax

Another update in the budget that may affect construction companies is the change to corporation tax. From April 2023, the corporation tax rate will increase from 19% to 25%. However, small businesses with profits of £50,000 or less will continue to pay the current rate of 19%. Companies with profits between £50,000 and £250,000 will have a tapered rate.

This change to corporation tax could impact the profitability of construction companies, particularly larger ones with higher profits. However, it’s worth noting that the government has also introduced a “super deduction” for investment in plant and machinery. This deduction allows companies to claim 130% of the cost of new equipment against their taxable income.

Extension of the Reduced Rate of VAT

The government has also announced an extension of the reduced rate of VAT for the hospitality and tourism sectors. This reduced rate of 5% was introduced in 2020 to support these industries during the pandemic. The reduced rate has now been extended until September 2023, which will provide continued support for businesses in these sectors.

While this extension may not directly impact construction companies, it could indirectly benefit those involved in building or refurbishing hospitality and tourism properties. The extension of the reduced VAT rate may encourage businesses in these sectors to invest in new projects or refurbishments, which could create new opportunities for construction companies.

Changes to Immigration

Finally, the budget also includes updates to immigration policy. From January 2024, the UK will introduce a new points-based immigration system. This system will prioritize highly skilled workers, and those who do not meet the criteria may face additional restrictions.

This change to immigration policy could impact the construction industry, which has historically relied on migrant labor. However, the government has also introduced a new skilled worker visa, which will make it easier for highly skilled workers to come to the UK to work. The construction industry may need to adjust its recruitment practices to attract highly skilled workers from overseas.

In Conclusion

Overall, the UK budget update for 2023 includes several measures that will impact construction companies in the UK. The investment in infrastructure and training is a positive development, as it could create new opportunities for construction companies. The changes to corporation tax may require some adjustment, but the super deduction could offset some of the impact.

The extension of the reduced VAT rate for the hospitality and tourism sectors may indirectly benefit construction companies, and the changes to immigration policy could create new challenges for recruitment. It’s important for construction companies to stay informed about these updates and adjust their business strategies accordingly.

Can You Claim VAT Back on Fuel Without a Receipt?

Can You Claim VAT Back on Fuel Without a Receipt?

If you’re a business owner or self-employed individual, you know that every penny counts when it comes to managing your expenses. One way to save money on your business expenses is by claiming VAT back on certain purchases, including fuel. However, what happens if you lose your fuel receipts or forget to collect them in the first place? Can you still claim VAT back on fuel without a receipt?

The answer is not straightforward, but it is possible under certain circumstances. Here’s what you need to know:

What is VAT?

VAT stands for Value Added Tax, which is a tax added to the price of goods and services in the UK. The standard rate of VAT is currently 20%, but some goods and services have a reduced rate of 5% or are exempt from VAT altogether. VAT-registered businesses are required to charge VAT on their sales and can claim back the VAT they pay on their business purchases.

Can You Claim VAT Back on Fuel?

Yes, you can claim VAT back on fuel used for business purposes, but there are some conditions you need to meet. Firstly, you must be a VAT-registered business or self-employed individual. Secondly, the fuel must be used exclusively for business purposes. This means you can’t claim VAT back on fuel used for personal use, such as commuting to and from work.

How to Claim VAT Back on Fuel

To claim VAT back on fuel, you need to keep accurate records of your fuel purchases, including the VAT element. This is usually done by keeping fuel receipts or using a fuel card that provides a detailed statement of your fuel purchases.

However, if you’ve lost your fuel receipts or forgotten to collect them, you may still be able to claim VAT back on fuel. You can use other evidence to prove your fuel purchases, such as bank statements or credit card statements, as long as they show the date and amount of the fuel purchase and the VAT element. You may also need to provide additional evidence to support your claim, such as a mileage log or vehicle logbook to show that the fuel was used for business purposes.

It’s important to note that the HM Revenue and Customs (HMRC) may ask for further evidence or clarification of your claim, so it’s always best to keep as much evidence as possible to support your claim.

In conclusion, while it’s preferable to have fuel receipts when claiming VAT back on fuel, it is possible to claim VAT back on fuel without a receipt under certain circumstances. As long as you have other evidence to support your claim and can prove that the fuel was used exclusively for business purposes, you may be able to claim back the VAT element of your fuel expenses. However, it’s always best to keep accurate records of your fuel purchases and seek professional advice if you’re unsure about your eligibility to claim VAT back.

5 Top tips for NHS Therapists when completing a self assessment tax return 2023-2024

5 Top tips for NHS Therapists – Self employed

As a therapist running your own business, filing a self-assessment tax return can seem daunting. With the complexity of tax regulations and the fear of making mistakes, many therapists find the process overwhelming. However, with proper preparation and organization, completing a self-assessment tax return can be a smooth and efficient process. Here are five tips to help you successfully complete your self-assessment tax return for your therapist business.

 

Find out more
  1. Keep Accurate and Organized Records

One of the most critical aspects of completing a self-assessment tax return is maintaining accurate and organized records of your business transactions. Keep track of all your income, expenses, and receipts throughout the tax year. Use accounting software or a spreadsheet to record all financial transactions related to your therapist business. This includes payments from clients, expenses such as office rent, utilities, supplies, and any other business-related costs.

Organize your records in a systematic manner, such as by month or category, so that you can easily locate and reference them when it’s time to complete your tax return. Proper record-keeping not only helps you stay compliant with tax regulations but also allows you to claim all eligible deductions and reduce your tax liability.

  1. Understand Deductible Expenses

As a therapist, you may be eligible for various deductions that can reduce your taxable income and lower your tax bill. It’s crucial to understand which expenses are deductible and keep accurate records of them. Deductible expenses typically include business-related expenses such as office rent, utilities, supplies, professional development, insurance premiums, marketing and advertising costs, and professional memberships.

Make sure you are aware of the tax rules and regulations in your jurisdiction and consult with a qualified accountant or tax professional if you have any questions. Properly claiming all eligible deductions can significantly reduce your tax liability and help you save money on your tax bill.

  1. Plan for Tax Payments

As a self-employed therapist, you are responsible for paying your own taxes throughout the year. This includes income tax as well as self-employment tax, which covers Social Security and Medicare taxes. It’s crucial to plan for these tax payments to avoid any surprises when it’s time to file your tax return.

Estimate your tax liability for the year and make quarterly estimated tax payments to the relevant tax authorities. Keep track of your payments and retain receipts as proof of payment. Failing to make estimated tax payments or underestimating your tax liability can result in penalties and interest charges.

  1. Review Your Tax Return Thoroughly

When completing your self-assessment tax return, take the time to review it thoroughly before submitting it. Double-check all the information, including your personal details, income, expenses, and deductions. Make sure that all the figures are accurate and entered correctly. Errors or inconsistencies in your tax return can trigger an audit or result in penalties.

Consider using tax preparation software or hiring a qualified accountant to help you complete your tax return. They can provide expertise and guidance to ensure that your tax return is completed accurately and in compliance with tax regulations.

  1. Meet the Filing Deadline

Meeting the filing deadline for your self-assessment tax return is crucial to avoid late filing penalties. The deadline for submitting your tax return depends on your jurisdiction and the type of business structure you have. Make sure you are aware of the filing deadline and mark it on your calendar to avoid missing it.

If you anticipate that you may need more time to complete your tax return, you can request an extension from the tax authorities. However, keep in mind that an extension only extends the deadline for filing your tax return, not for paying any taxes owed. Make sure to pay any taxes owed by the original deadline to avoid interest charges and penalties.

In conclusion, completing a self-assessment tax return for your therapist business requires careful planning, accurate record-keeping, and attention to

How to prepare for the first Vat return period filing to HMRC

Preparing for first VAT return.

 
Preparing for your first VAT (Value Added Tax) return can be a daunting task, especially if you are new to business or unfamiliar with VAT. However, with a little bit of planning and organization, it can be a relatively simple process. In this blog post, we will provide you with a step-by-step guide on how to prepare for your first VAT return.

 

 

Step 1: Register for VAT

 
If you are not already registered for VAT, you will need to do so before you can file your first VAT return. You can register for VAT online with HM Revenue and Customs (HMRC) or by using a VAT registration agent.

Step 2: Understand VAT

 
Before you start preparing your VAT return, you need to understand the basic principles of VAT. VAT is a tax that is charged on most goods and services sold by businesses in the UK. Businesses are required to charge VAT on their sales, and they can reclaim the VAT they have paid on their purchases.
 

There are different VAT rates depending on the type of goods or services that you sell. For example, the standard VAT rate is currently 20%, but there are also reduced rates and zero-rated goods and services. Make sure you understand the different rates and which ones apply to your business.

 

Step 3: Keep accurate records

 
Keeping accurate records is essential when it comes to preparing your VAT return. You should keep records of all your sales and purchases, including invoices, receipts, and bank statements. Make sure you keep these records in a logical order and keep them up to date.
 

There are many software programs available that can help you keep track of your VAT records. Alternatively, you can use spreadsheets or paper records.

 

Step 4: Calculate your VAT

 
Once you have accurate records of your sales and purchases, you can calculate your VAT liability. This involves deducting the VAT you have paid on your purchases from the VAT you have charged on your sales.
 
If your VAT liability is greater than the VAT you have paid, you will need to pay the difference to HMRC. If your VAT liability is less than the VAT you have paid, you can reclaim the difference from HMRC.
 

Step 5: Complete your VAT return

 
You can complete your VAT return online using HMRC’s VAT online service. Alternatively, you can use accounting software that is compatible with HMRC’s systems.
 
Make sure you complete your VAT return accurately and on time. Failure to do so can result in penalties and interest charges.
 

Step 6: Pay your VAT

 
Once you have completed your VAT return, you will need to pay any VAT that you owe to HMRC. You can pay online using HMRC’s VAT online service or by direct debit.
 
In conclusion, preparing for your first VAT return may seem daunting, but by following these steps, you can ensure that the process runs smoothly. Keep accurate records, understand the basics of VAT, and use software or spreadsheets to help you calculate your VAT liability. And, remember to complete and submit your VAT return accurately and on time to avoid penalties and interest charges.

Advantages and Disadvantages: Limited Company Vs. Sole Traders

Advantages and Disadvantages: Limited Company Vs. Sole Proprietorship

Functioning as a sole trader may be a great way to work for a small business and often very effective for many people running a small company. But they have another option to operate their business as a limited company.

However, operating as a limited company is not necessarily the perfect choice for most because they will have to deal with several issues in the process. It can be pretty complex to start a new limited company. Of course, you get rewarded with benefits like getting a more professional appearance and a more favorable tax situation.

Let us now learn about the advantages and disadvantages of setting up a limited company than a sole proprietorship, allowing us to understand if we will benefit from opening a limited company and whether it is going to be a perfect choice or not.

The Advantages

The decision can be beneficial to you for several reasons. A few significant positives of becoming a limited company are as follows:

Tax Efficiency

Getting additional tax benefits can be the first primary reason for becoming a limited company in place of being a sole trader. You can generally take maximum tax-free income as a director of your limited company. As of 2022, you may claim an allowance of 12,570 as your salary and balance income in the form of dividends.

It benefits you a lot because you do not have to pay any national insurance contribution on dividends. Moreover, you will be paying only 19% of your company profits as corporation tax than 20%-45% as income tax if you operate as a sole trader.

Limited Liability

Choosing to become a limited company limits your liability, and you will not be liable for the business as you will be as a sole trader. It implies that all your assets and finances are protected if the company incurs debts and goes bankrupt.

Separate Entity

Sole traders have total liability for their business actions and are responsible for entering into legal contracts. On the other hand, limited companies allow much greater flexibility to the management and are hugely beneficial because they are separate legal entities.

Professional Image

When you operate as a limited company, you get a more professional appearance. Even if you are a single individual involved, it appears more significant and more professional to others. Although it may seem a little less unimportant advantage, it can make a tremendous difference in how customers and other businesses perceive you. It will get you considered for assignments that may not come to you as a sole proprietor.

The Disadvantages

A sole trader business has several inherent pros and cons. Similarly, besides the benefits mentioned above, a limited company also comes with a few significant disadvantages as follows:

Complex Setup

You undoubtedly get a wide range of benefits with becoming a limited company, but it is pretty complex to set it up. In contrast, it is relatively easy to set up a sole trader business by simply registering with HMRC. On the other hand, you will have to register as a limited company with companies house and pay fees. For the first-timers, it can be a daunting process.

Complicated Accounting

Unlike the Sole trader business, you will face a range of additional challenges to manage the accounts of a limited company. According to specialists of small businesses, limited companies may have to deal with tax planning, book-keeping, payroll, not to mention keeping company accounts up to date, managing business expenses, and addressing tax return issues. Moreover, if you fail to submit tax returns correctly, you may have to pay fines and face other punishments.

Ownership Issues

Sole traders make all of their decisions in isolation, and they have to justify their choices only to themselves. But it is not so simple for limited companies with multiple shareholders. Those shareholders will have a say in how the business will be run, and you have to appease all of them to run the business smoothly, complicating matters significantly.

Reduced Privacy

Limited companies have to register with Companies House, and they share information about company accounts, their shareholders, names and addresses of directors, etc. It means that such financial records and personal details are available to anyone who can access them.

Advantages and Disadvantages: Limited Company Vs. Sole Trader

Advantages and Disadvantages: Limited Company Vs. Sole trader

Functioning as a sole trader may be a great way to work for a small business. It is often very effective for many people running a small company. But they have another option to operate their business as a limited company.

However, operating as a limited company is not necessarily the perfect choice for most. This is because they will have to deal with several issues in the process. It can be pretty complex to start a new limited company. However, you will get rewarded with benefits like receiving a more professional appearance and a more favourable tax situation.

Find out more

Let us now learn about the advantages and disadvantages of setting up a limited company rather than a sole proprietorship. This will allow us to understand if we will benefit from opening a limited company and whether it is going to be a perfect choice.

Subscribe to our channel for the latest updates.

Subscribe Now

The Advantages

The decision can be beneficial to you for several reasons. A few significant positives of becoming a limited company are as follows:

Tax Efficiency

Getting additional tax benefits can be the first primary reason for becoming a limited company rather than a sole trader. You can generally take maximum tax-free income as a director of your limited company. As of 2022, you may claim an allowance of 12,570 as your salary and balance income in the form of dividends.

It benefits you a lot because you do not have to pay any national insurance contribution on dividends. Moreover, you will be paying only 19% of your company profits as corporation tax than 20%-45% as income tax if you operate as a sole trader.

Limited Liability

Choosing to become a limited company limits your liability. You will not be liable for the business as you will be as a sole trader. This means that all assets and finances are protected if the company incurs debts and goes bankrupt.

Separate Entity

Sole traders have total liability for their business actions and are responsible for entering into legal contracts. On the other hand, limited companies allow much greater flexibility to the management. They are also hugely beneficial because they are separate legal entities.

Professional Image

When you operate as a limited company, you get a more professional appearance. Even as a single individual, it appears more significant and more professional to others. Although it may seem a little less unimportant advantage, it can make a tremendous difference in how customers and other businesses perceive you. You may be considered for assignments that you may have not received as a sole proprietor.

The Disadvantages

A sole trader business has several inherent pros and cons. Similarly, besides the benefits mentioned above, a limited company also comes with a few significant disadvantages as follows:

Complex Setup

You undoubtedly get a wide range of benefits with becoming a limited company, however it is pretty complex to set it up. In contrast, it is relatively easy to set up a sole trader business by simply registering with HMRC. On the other hand, you will have to register as a limited company with companies house and pay fees. For the first-timers, it can be a daunting process.

Complicated Accounting

Unlike the Sole trader business, you will face a range of additional challenges to manage the accounts of a limited company. According to specialists of small businesses, limited companies may have to deal with tax planning, book-keeping, payroll, not to mention keeping company accounts up to date, managing business expenses, and addressing tax return issues. Moreover, if you fail to submit tax returns correctly, you may have to pay fines and face other punishments.

Ownership Issues

Sole traders make all of their decisions in isolation, and they have to justify their choices only to themselves. But it is not so simple for limited companies with multiple shareholders. Those shareholders will have a say in how the business will be run. You will have to appease all of them to run the business smoothly which complicates matters significantly.

Reduced Privacy

Limited companies have to register with Companies House, and they share information about company accounts, their shareholders, names and addresses of directors, etc. It means that such financial records and personal details are available to anyone who can access them.

Gm Professional accountants have office located in Canary wharf London, Birmingham, Wimbledon and Ilford Essex.

What is a group company in the UK

All About Group Structure Company

Businesses that owners manage come in numerous forms. There are partnerships, sole or individual and
multinational companies. However, as usual, there is not an actual size that fits every kind of approach.

Find out more
Group Structure is?

Group structures are established as a group of companies or companies that are indirectly or directly
occupied by an individual company called the Parent. You can say that all of the organizations in a group
structure format are hence under the leading ownership and supervision of the top or Parent company.

Kinds of Group Structure

Group structures of companies take an assortment of forms, such as vertical group structure, horizontal
group structure, and even the various forms offered of cross structures.

Below are some illustrated examples

for you to know more about group structure. The diagram portrays the three categories of group structures
which are vertical, hybrid, and horizontal.

Forming another option is to construct separate individual organizations or corporations, which are often
established by identical individuals or groups of shareholders or companies.

In that kind of case, the corporations are correlated with each other as periodically pertained to as a term
called sister companies, which are under the overall supervision of one or many individuals but still do not
form any group. Aside from that, one more option is to reorganize the said industry into separations of
departments.

Subscribe to our channel for the latest updates.

Subscribe Now

 

Why Forming A Group Is An Alternative?

You may ask why forming a group is a good alternative as contradicted to solely establishing a sector or
arranging a separate commodity?

That’s because a spectrum of probable commercials, advertisements, regulatory, tax, and legal benefits can
exist in constructing an organization. However, conceivably the most accepted explanation for doing that is
the excellent supervision of risk.

Advantages of a Group Structure

There are four main explanations why it is reasonable to form a group: It includes Ring-fencing investments
and drawbacks; The regulatory advantages; The centralized processes & assets; And Tax benefits as well.

Ring Fencing – Properties and liabilities can be fencing by choosing the subsidiary company to be used in
ring-fencing the possessions or drawbacks of each potential company inside the organization with a bit of
penalty. For example, suppose you prefer to broaden your company or business into a unique product. In that
case, you can do it by using a deputy to assure that the properties of those in the actual industry are protected
and are safeguarded from any detriments that may occur concerning the recent investment.

A separated structure can never have the capacity to provide such safety as well as ring-fencing financial
drawbacks.

So, the only use of separating groups and companies is to encourage diversification and enable
the new venture to assemble its name or status. Though, with such assistance, an existing company may be
required.

You can see that the group configuration can thus also support safeguarding against commercial
and reputational danger.

The use of an organizational structure can constantly fence all commercial dangers and penalties as, from an
empirical viewpoint, this could not be feasible.

For example, loans and mortgages may instruct the prominent or Parent firm to ensure or finance the
subsidiaries and liabilities.

Nonetheless, straight in those situations, the harms and detriments are still
generally limited and countable.

Thus, whenever shifting assets around inside a group, the unfavourable for
acquiring new investments can be amassed promptly into the related holding company. As a parent company
and a familial unity, care is required to ensure that borrowers are not accused and prejudiced.

Assets that are comprehensible in importance, such as IP and property, can commonly be transported to a
new group corporation.

However, only to a group at their value relatively than demand value. Suppose they
were not transmitted at the market price, and the substituting company rides into financial complications. In
that case, the transfer will be surveyed, and the request could probably be set aside by officials and
liquidators.

Reasons include because there may be a selection that may assist in ensuring against such bankruptcy risks.
A deal of the purchases at market price and value can be leased back to a trading company.

So, in short, forming an organization and shifting properties such as IP and property from out of trading into a different
carrying company can be very helpful in protecting and ring-fencing the properties that are going ahead but
expects comprehensive planning and guidance.

Regulatory Benefits – is the usage of different deputy companies who will accomplish various activities or
hold certain assets.

For example, intellectual property. They can also assist from an executive or regulatory
viewpoint. Some distinct regulatory relations can extend to enclose other group partners. Many times, the
procedure for performing has become either spontaneous or shortened to indicate that there’s widespread
custody and the organization from a financial standpoint effectively constructs one strengthened entirety.

Centralized Functions and Assets – faction structures intend to give the foremost holding step for distinct
functions or assets. For example, if the industry inhabits several stations or properties – an organization of a
corporation can be constructed to carry all the estate assets. Moreover, to rent out or license as expected to
the other related committee members.

Similarly, when the industry involves some exploitation regarding the IP across and from a spectrum of
demands or commodities, the company in charge can be utilized to grant the IP licenses to the group
companies. Please take note that this is prohibited as crucial to the related commodity of the market.

This way, it guarantees that a business likes to alleviate any specific division/product, and it’s well-organized in
the structure of a group so it can be relatively simple and cost-efficient rationale by eliminating the relevant
helper which is holding out only the IP privileges that it can benefit from. The rest of the IP privileges are
maintained within a conserved organization.

Tax Benefits – this is one crucial benefit of an organization arrangement as rejected by operations is the
design of the sister companies. It is accountable to distinct circumstances that are being met. Some
corporations are paid for some tax liberties and assistance in connection to agreements between every group
member.

You can say that specific tax misfortunes solaces can be across the institution rather than just in one
company that they originate on. In comparison, this assistance does not mainly pertain to related companies.
The transfers of substantial assets between every company in the same group, such as for UK equity profits
tax objectives, are also considered to happen on an impartial tax rationale.

The susceptible transferring of purchases between-group corporations is allowed because of it. Also, captive
to certain circumstances being met, the immunities from UK company tax in connection to earnings from the
removal of interests in the deputy and assistance from the stamp tariffs on the move shares and possessions
between every group partners.

How to Calculate Amazon Sales VAT Implications

How to Calculate Amazon Sales

Amazon is a huge platform focused on giving e-commerce entrepreneurs a central place to establish their businesses. However, some start-up company owners have yet to learn about their various protocols, as well as acquire some tips and tricks to further elevate their negotiating skills. One of the vital competencies needed to last long in this field is to handle various monetary requirements, such as the calculation of value added tax (VAT) on Amazon Sales.

A feature in Amazon which business owners should know, especially when they are interested in selling their products in different countries, is the Fulfillment by Amazon (FBA). This program allows business owners to post their products, with Amazon shipping them at an agreeable rate. Knowing the VAT on Amazon Sales is a great way to kickstart your journey into achieving your global domination of product selling.

Find out more

Amazon VAT

As a known channel for different brands, Amazon has established its dominance in being one of the best e-commerce companies to date. And like all businesses, they also add a consumption tax to all products listed under their system. This allows the company to earn and continue serving as an online business channel.

Amazon has a certain feature that aids in calculating the value added tax which helps sellers on the platform identify not only their sales price but also the consumption rates added on the products’ overall costs. The Amazon Vat Calculation Service (VCS) is a convenient way for small business owners in the platform to calculate their products vat-free while still sending an invoice with consumption costs included to transaction partners.

Half of the products and services offered on Amazon usually have a twenty percent VAT charge, but some businesses are an exception. Health products have a reduction rate of five percent, while books and goods that are sold in non-EU countries get zero vat rates.

Amazon Selling Plans

This enterprise which established its root on the internet, currently offers two types of selling plans:

  • Individual Plan – If a business has just started and sells less than 40 products a month, they are obligated to pay only $0.99 for every product sold on Amazon.
  • Professional Plan – Those availing of this plan are usually bigwigs in online selling. They usually have to pay six to twenty-five percent fees on closing and referral. They pay $39.99 monthly; however, they do not have a VAT charge per item sold.

Amazon Charges to Consider

Aside from VAT, Amazon also has various tariffs to be paid depending on product type and services offered. These are:

  • Fulfillment Charge – This Amazon rate depends on the product specifications, such as dimension and weight. Ranging from $2.41 to $10, they usually increase depending on product size.
  • Referral Cost – This is mainly based on the item category. Amazon asks for a per-item minimum charge of referral. This may be taken as a part of the sales price and ranges from six to twenty percent of product sales. Another way to get referral cost is by taking it on a minimum charged from pieces of jewelry and has a rate of $2.
  • Variable Closing Cost – This type of charge Amazon applies to music, books, video games, and BMVD items. They fluctuate depending on the category, shipping location, and preferred shipping services.
VAT Calculators Settings

Some businesses are under the flat rate scheme and sell products not listed on Amazon’s standard charge. In these cases, the internet can offer a list of VAT calculators free of charge. One example is http://www.vatcalculator.co.uk/ which is accessible and easy to understand. It gives an overview of various monetary aspects of sales, such as net and VAT costs.

GM Professional Accountants have offices Located in London, Birmingham and Essex.

When will Companies House strike off a company

When will Companies House strike off a Limited company, CAN I STOP IT? ?

What Is a Company Strike Off?

A company strike off ceases a business completely. All operational businesses are taken a record of within the Companies House registry. Once the company has been removed from this list, they stop any kind of existence. This is a company strike off. There are two variations of a company strike off, one that is voluntary and one that is compulsory.

Find out more

A voluntary strike off is a decision made by the company. The owner of that company applies for the business to be dissolved. This tends to be a result of the business no longer having a purpose. This could be down to the owner of the business wanting to retire. Another reason could be that they want to focus on other aspects of their lives.

A compulsory strike off is when the business is deemed unfit for further endeavours. Usually, a second party petitions that the business is taken off the list. This is often the Companies House that does this if the business has failed to file in their accounts.

When a company strike off request is made, there is a notice made in The Gazette newspaper. The notice is to inform other companies or parties that they can contest against the strike off. The people who wish to object have two months to respond to the notice. If there are no objections after this period, they then strike the business off the registry.

What Does It Mean When Your Customer Is on the Strike Off List?

When a company is struck off, it no longer exists. Any further use of that company is illegal. It must stop any trade it might have, and all assets left over will be handed over to the Crown.

The owner of any business that ends up on the strike off list should notify all relevant parties. Unfortunately, on some occasions, not all parties are informed. This can lead to creditors overlooking the information of the strike off altogether. This also means that creditors may miss the notice posted in The Gazette and miss their chance to appeal.

It will be much harder to recover any debts once the company has been struck off and dissolved. Before the strike off is implemented, the company should ensure that they have dealt with all business. They need to ensure that nothing is outstanding. This includes any further work that needs to be done and paying any outstanding bills.

What Happens If You Object to a Strike Off?
Sometimes, there have been companies that have requested to be struck off but still owe money. Here, the person or party can immediately object to the strike off as soon as it happens. To do this, they will have to contact the Companies House.

It is also possible to appeal the strike off once it is implemented if you were not informed. In this incident, you will need to have proof that the debt exists and be able to provide it to the Companies House.

Why Did My Customer Receive a Company Strike Off Notice?

Sometimes, a company will receive a strike off notice when they didn’t intend in dissolving. This notice will be sent from the Companies House. It is usually because of a business failing to file its account by the deadline set. They can organise an extension, but this has to be done in advance.

If a business files its accounts late and receives a strike off notice, it could signify that the company is suffering from financial difficulties. This is quite a common occurrence, with some big companies, such as BuzzFeed UK, receiving a notice in this way.

If you are doing business with a company that has received a strike off notice, assess their company’s situation. If you think that the company may find difficulties in paying you, protect yourself. There are steps you can take to achieve this.

• You can negotiate and agree upon better payment terms. The agreement could involve being paid upfront or giving them a reduced payment time. You can also decrease the amount the company owes you if you see fit.

• You can renegotiate contracts with the business. Some clauses will help cover your work from being unpaid. The Retention of Title clause is good to implement. It will allow you to repossess any unpaid goods if the company becomes struck off.

• You can cut your losses. If you feel it is definite that the company cannot pay anything back to you, you can immediately stop doing business with them.

Gm Professional Accountants have offices in London, Birmingham and Essex.

Accountants Guide on Domestic reverse charge in 2021

Domestic reverse charge Guide

Earlier this year, the government introduced a new legislation bill that sought to tackle and deal with fraudulent building and construction activity. This bill, known as the Domestic Reverse Charge Bill was officially put into place earlier this year on March 1st, of 2021.

Find out more

What is the DRC and what does it do?

Known simply as the DRC, the Domestic Reverse Charge is a new piece of legislation that states certain construction businesses may no longer be required to charge the supply of materials and services to VAT. In order to qualify, the materials must be required to be reported under the CIS. Those that aren’t will still have to account for their own VAT and what they would normally pay the supplier to the HMRC.

Subscribe Now

The reason for this legislation is due to the increase in fraud opportunities observed for micro-businesses. Smaller and sub-contractors, due to their micro-status, have been able to avoid paying their collected VAT.

VAT (also known as Value-Added Tax) is a consumption tax that is put onto products as the value of the product increases throughout its production and ultimate point of sale. Users pay an amount of VAT that is on the product’s cost, less the material costs that may have already been taxed individually.

The CIS (also known as Construction Industry Scheme) is used to collect VAT as well as Income Tax from those involved in the construction world. This includes subcontractors and other self-employed or independent builders as well. This is done in place of them paying Income Tax or making National Insurance contributions. This is done by way of the HMRC using the CIS to collect taxes from said contractors.

In the construction industry, in particular, the DRC for VAT will specifically apply for any construction-based services that are supplied at standard rates or reduced rates. The services must also need to be reported under CIS and relates to both materials used as well as labour.

If a construction or business does not make onward supplies regarding their services, reverse charges will not apply. Because of this development, it is important that all customers that are currently registered for VAT and CIS ensure that their suppliers do not apply a reverse charge for services supplied to them.

As there will often be times a person does and does not pay the VAT reverse charge, it is important that everyone involved in the construction based industry have a full understanding of the new system. This may likely require working with an experienced accountant to ensure everything is properly in order.

In the below section, we have broken down and listed many possible and potential issues that may arise depending on the company’s business type. It is important to keep in mind, however, that there are no absolute rules, and that there will certainly be a fair bit of “grey area” involved. Reviewing this with an experienced accountant will ensure you and your company do not run into any issues later on in the construction process.

Vat Moss Ireland Registration post Brexit Accountants

EU Vat return accountants guide

In 2021, there were major changes in the European Union(EU) Value added tax (VAT) rules for ecommerce businesses. The major change was the introduction of the single One stop shop (OSS) EU VAT return and the thresholds for distance selling were removed.

The other reforms were ending the VAT exemption for low value imports, and the new IOS return and making marketplaces the deemed supplier for VAT purposes.

Find out more

After July 1, 2021, businesses selling to consumers , and dispatching their goods from only one country, will not have to register for VAT in the foreign country and file VAT in the different countries.

Instead the business can complete the OSS form and file it along with their regular VAT return which will list their sales across the EU. The seller has to remit the VAT amount for items sold to the home country’s VAT authorities, which will then forward the taxes to the relevant countries based on sales.

Non-EU sellers can also apply for OSS regime, and specify the single EU state for registering, filing returns . The EU VAT reform package was to be implemented from January 1, 2021, but was postponed.

The new reforms are based on the success of the single VAT return, MOSS return for businesses offering services like digital, broadcast and telecom services to customers in 2015.

In addition to businesses selling products to customers, event organisers and service providers can also use OSS.

Distance selling rules ending

The existing EU VAT rules specify that the seller should charge VAT at the rate of the country, where the customer is residing, called the ‘destination principle’.

So for EU sales in different countries, sellers have to register in each country, where they sell goods. So to reduce the compliance burden for small sellers, a VAT registration simplification called the thresholds for distance selling, where sellers did not have to register if the amount was less than the specified amount. In Netherlands. Luxembourg and Germany it is Euro 100,000 and for other EU members Euro 35000 annually.

This simplification will be withdrawn from July 1, 2021, and charge the VAT at the applicable rate in the country where the customer is residing, so that it can remitted to the tax authorities

Single OSS EU VAT return

EU is extending the single VAT return to eCommerce business selling goods in different countries. These sellers are usually selling from stocks in their home state. Earlier the businesses were forced to register in every EU country, and this was extremely inconvenient for the sellers, reducing their sales.

However, the sellers having stock in multiple countries will not benefit, since they must register in every country where their stock is located. This is also applicable for sellers who are part of the FBA program of Amazon. Sellers who already have VAT registrations in other EU countries and are selling stock only from the country where they reside, can close the non-resident VAT registrations from 1 July 2021 to use the OSS report.

The sellers can declare the sales to customers within the same country in their VAT domestic returns

In addition to goods, OSS will report cross border services, specific domestic sales through marketplaces. The OSS return is filed by using the delivery address to identify the country where the customer is residing.

Then based on how the goods are classified, and the applicable rate in the customers country, VAT is charged, which may be lower or nil. The OSS should be filed quarterly. It is a simple form which specifies the VAT which the seller has to pay the country where his customer resides. For uniformity, the OSS return is standardized in all the member states of the EU.

Effect of Brexit on UK, EU sellers
The United Kingdom (UK) left the EU on 31 december, 2020 and Brexit is no longer applicable. UK sellers are treated as as non-EU sellers. If they wish to file a OSS return for ‘non-Union’ country sellers, they can register in any of the EU states.

The UK sellers are able to close their existing EU VAT registration in any country where they do not have a stock. UK sellers had to consider appoint a fiscal representative in the EU countries where they were registered. This will no longer be necessary from July 1, 2021, since they can use the OSS returns for non-EU countries.

Gm Professional Accountants have offices located in London. Contact us now for registration.

Ecommerce UK VAT 2021 Changes to Dropshipping, Distance selling taxes

This article is for ecommerce business owners and provides a review of the most important changes to the UK VAT system from 1 January 2021 onward.

Find out more

Introduction

As of 1 January 2021 amendments are being made to the way in which the UK VAT system operates. The alterations relating to ecommerce businesses have been years in the making and were agreed upon prior to the outcome of the Brexit referendum was known.

View our packages

The intention had been for the changes to be made on New Year’s day 2021, but in light of the coronavirus pandemic the EU has moved its implementation to 1 July. That the UK did not impose any delay has meant there will be six months’ difference in approach.

To ensure this does not cause undue difficulty to the online businesses affected by the changes, we cover everything of which ecommerce owners need be aware.

Ecommerce VAT Changes: an overview

Here we provide detail on the four major changes to the UK VAT system introduced by the government from the start of 2021.

1. Withdrawal of Low Value Consignment Relief (LVCR)

LVCR previously meant that goods valued at £15 and lower were exempt from import VAT. As of the shift in rules on 1 January, vendors or postal services will have to declare and pay VAT to HMRC on any goods sold at £135 and below. This new regime will have a significant impact on the way in which dropshippers account for VAT.

2. Postponement of Import VAT

Private sellers are also considerably affected. Prior to 2021, import VAT was placed on goods passing through customs and then reclaimed on VAT returns. The changes introduced a new procedure. Now, import VAT needs to be declared on businesses’ UK VAT returns with nothing being paid on imported goods as they arrive.

3. UK sales no longer subject to EU Distance Selling Thresholds (DSTs)

Up until 30June the goods UK ecommerce businesses export to EU customers will move from being classified as distance sales to being UK exports and zero rated. Businesses located in the EU are now required to register for UK VAT. If you are in this position, get in contact and we can help you.

From 1 July 2021 onward, the VAT MOSS framework will encompass digital as well as physical products. Once this happens UK businesses will be relieved of the need to register in each EU jurisdiction separately and will instead be permitted to export to the EU via VAT MOSS.

4. EC Sales Lists (ECSLs) no longer apply to UK businesses

Since 1 January 2021 UK businesses have not been allowed to make EC Sales and so have no further requirement to complete and submit ECSLs.

We will now examine the consequences of each of these four major changes in greater detail.

Withdrawal of Low Value Consignment Relief (LVCR)

Low Value Consignment Relief was in effect prior to 2021 and meant: i) any imported goods with a value of £15 or less were not subject to either Customs Duty or import VAT, and ii) imported goods valued above £15 and below £135 drew import VAT but not Customs Duty.

The withdrawal of LVCR on 1 January 2021 means VAT is now collected at the point of sale – the online market place (OMP) – rather than the point of importation. All imported products valued below £135 will be subject to domestic, not import, VAT.

Vendors offering goods at a cost of up to £135 through their own website rather than an online marketplace such as Amazon are now required to account for, and register, UK VAT. As domestic VAT has expanded to include the import of goods from the EU and sales of products under £15 previously exempted by LVCR, it is no longer the responsibility of delivery agents to collect import VAT from customers.

There are no changes for sales on online marketplaces within the United Kingdom. This means that a vendor operating on eBay or Amazon and sending a product from a location within the UK to a customer within the country has no need to change any of their practices with respect to VAT calculations.

Consequences for vendors operating from their own online store

Traders directly importing goods to customers within the UK and selling through an online store such as Wix, Shopify or Squarespace are now tasked with accounting for UK VAT on each of those transactions.

Customers only see the price they end up paying. For the majority of businesses it means they now lose 1/6 of their profit margin to VAT. For example, a product selling for £24 now includes VAT of 20%, so based on final selling price the charges break down as £20 +£4 VAT because 1/6 of £24 is £4. For the trader to retain their pre-2021 profit margin, their new prices will have to have been increased by 20%.

The good news is that we provide a comprehensive service for all matters related to VAT registration. So if you are a dropshipper selling products from outside the European Union and importing them into the UK, get in touch with us now and we’ll be able to help you put everything in order.

Consequences for vendors operating through an online marketplace

Where trading involves the direct importation of goods to customers within the UK through online marketplaces such as eBay, Amazon or Etsy, responsibility for collecting and charging VAT has now passed to that online marketplace. This means it is imposed at the checkout whilst the vendor includes the amount as zero rated on their UK VAT return.

Find out more

Postponement of import VAT

In the past, ecommerce businesses had to pay import VAT when their goods were brought into the UK before subsequently reclaiming it on their VAT return. From 1 January 2021 importers no longer hold a duty to pay VAT upon the arrival of goods. They are now required to declare and recoup import VAT on the same VAT return which results in a NIL cash impact.

Since the changes, postponed accounting is appropriate for use with respect to VAT where:

  • Goods are being imported for business use
  • The business holds a GB EORI number that is also used on the customs declaration, something that is usually linked with UK VAT numbers
  • The business’s VAT number appears on the customs declaration

Those businesses that are not VAT registered in the UK will not be permitted to account for import VAT in this way. They will have to pay import VAT at the moment the goods have been imported.

Where postponed import VAT accounting does not apply

There are different regulations in force for goods in packages below £135. We covered these in the �Withdrawal of Low Value Consignment Relief (LVCR)’ section earlier in this article.

Completing VAT returns under the Postponed Import VAT scheme

For imported products it is now necessary to account for import VAT on the VAT return for the period during which those products were imported.

Import information is now available through a new online account that provides a monthly statement that can be downloaded for record keeping. This is akin to monthly C79 documents and will show the aggregate of import VAT postponed for the previous month, information which needs to be included in VAT returns.

The changes to how VAT returns now need to be filled-in are:

  • Box 1 needs to include the VAT that was due during the period on imports accounted for through postponed VAT accounting
  • Box 4 needs to include the VAT that was reclaimed during the period on imports accounted for through postponed VAT accounting
  • Box 7 needs to include the total importation value, excluding VAT, of all goods included on the monthly online statement

UK sales no longer subject to EU Distance Selling Thresholds (DSTs)

EU Distance Selling Thresholds stopped applying to sales moving from the UK to the EU on 1 January 2021. This has the effect that all sales from the UK are treated as exports and so are zero rated for UK VAT purposes.

At the EU end, such sales are subject to import VAT upon arrival. This may have the unforeseen and unfortunate effect on consumers of their goods being held at customs until import VAT has been paid. Such a state of affairs is not beneficial for ecommerce businesses because customers will be unhappy and post negative are required to pay more

Such a state of affairs is far from ideal because customers are unlikely to be pleased at having to pay an unexpected extra charge for their purchase. Should that come about they may well complain or leave negative reviews, a course of action that will mean ecommerce businesses run the risk of suffering reputational damage for something that is beyond their control.

We will advise on VAT changes due to be introduced by the EU on 1 July 2021 once they have been finalised.

EC Sales Lists (ECSLs) no longer apply to UK businesses

Businesses that have supplied goods or services to businesses in the EU no longer need to submit EC Sales Lists.

 

Register now

We have compiled a guide on everything you need to know about how to register, including the steps you need to take to do it for yourself. Please contact us if you would like either a copy of that guide or for us to take care of those necessary steps for you.

Find out more

HOW TO REPORT A SEISS GRANT ON YOUR TAX RETURN?

The SEISS Grant

What is SEISS Grant?

SEISS (Self-Employment Income Support Scheme) came as good news for several sole traders in the UK. Chancellor Rishi Sunak extended the scheme on 3 Mar 2021 while presenting the budget. It will now remain in force till Sep 2021. The government introduced this policy in May 2020 as a temporary measure for self-employed people who suffered financially due to the covid 19 pandemic and the first lockdown in the country.

We have already seen three rounds of this grant. The fourth round can grant up to 7500 per sole-trader, accounting for 80% of earning losses in Feb-Apr 2021. Self-employed people can claim the fifth round of grants also in Jul 2021 for covering their losses from May onwards. It would cover 80% of your loss if you suffered a fall in turnover by 30%.

Who Is Eligible for A SEISS Grant?

You can apply subject to the following conditions:

Annual trading profits below 50,000

Most of your income comes from self-employment

Completed self-assessment tax return

An ordinary partnership can claim based on an individual share in profits.

Those who earn income from property cannot apply

The sole trader’s profits reduced significantly due to decreased demand or capacity or inability to trade due to the pandemic

You must declare that you want to continue trading

You can apply for the SEISS grant online, and HMRC will get in touch with you with the claim dates. You can expect the SEISS grant within six working days.

What Is Different in The Fourth Seiss Grant?

Even if you did not qualify in previous rounds, you could still apply provided you have filed the self-assessment tax return by 2 Mar 2021. Remember that late filers are not eligible. Moreover, if you claimed in any of the first three rounds, you cannot apply this time.

The scheme promises to help about 600,000 sole traders who could not get any grant so far. The system will consider the tax return of 2019-20. If you were self-employed in that tax year, you could apply by 31 May 2021.

Reporting In Your Self-Assessment Return

SEISS grant is not a loan, so there is no need to repay it. Nevertheless, it is subject to class 4 national insurance contributions and Income tax.

These grants are taxable in the year of receipt. Hence, if you got the first three grants, you will have to pay tax on them in the 2020-21 taxation year and report in the self-assessment year 2020-21

Similarly, if you are a self-employed person (aka sole trader), your 4th/5th SEISS grants will be taxable in 2021-22 tax year, and you must report them in 2021-22 self-assessment.

HMRC has included a specific box to enter the amount received from SEISS grants for self-employed people in tax return forms of these two years.

Other Features Of SEISS Grants

If you received a grant more than you should have or were not entitled to, please notify HMRC within 90 days to return the grant value, failing which HMRC may impose a penalty.

Remember that SEISS does not constitute a part of taxable turnover for the calculation of VAT. Hence, if grant money increases the VAT threshold above 85,000, you still need not register for VAT.

If you could not pay your self-assessment tax due to covid 19, you can pay in affordable instalments, including delayed payments due in Jul 2020.

If you do not fall under the purview of SEISS grants, you can apply for other cash grants, tax reliefs, or govt loans, even if your business is closed.

You may check the GOV.UK website for further information.

Micro Business Accountants Guide

Micro-Business

What are Micro-Business Accounts?

Every business must file the statutory company tax return with HMRC. However, small and micro businesses have several options for submitting their returns. You can save money and time by submitting your return in a simple micro-entity account format.

Find out more

According to the Companies Act 2006, we can classify a limited company as a micro business if any two of the following three conditions are true during a particular financial year.

It may not have an annual turnover above £632,000.

The balance sheet total may not exceed £316,000.

It may not have an average of more than ten employees in the financial year.

How Do Micro-Entities Do Accounting?

Microbusinesses can do accounting by:

  1. Opening a bank account
  2. Tracking their income and expenses
  3. Developing a bookkeeping system with digital records
  4. Setting up a payroll systems
  5. Investigating import tax
  6. Determining how they will get paid
  7. Establishing VAT procedures
  8. Determining their tax obligations
  9. Calculating net profit margin
  10. Finding good accounting partners

Business Expenses

You can think of any expense as a business expense by determining whether it is for private or business use.

Setup Costs: You can include the pre-trading expenses in the first period of your accounting.

Office Costs: They include printing, stationery, internet, separate landline phone for business.

Clothing Expenses: Protective clothing and uniform except for everyday clothing costs

Insurance and Subscription Expenses: Recognized body relating to business and public Liability insurance

Banking Expenses: Bank charges, annual arrangement fee, credit card expenses

Transport Expenses: Mileage allowances with car parking charges, Specific percentage of motor expenses for business

Using Home for Business: You can use HMRC rates or actual expenses incurred in the period.

Subsistence Costs: You can claim it if you are away for more than five hours.

Hotel Expenses: If you need an overnight stay in a hotel for a business trip

Disallowable Expenses

The taxable profit is different from your accounting profit. The expenses are also disallowable if they are wholly and exclusively not for business purposes.

Drawings for personal use; however, wages are allowable for a limited company

Goods for personal use

Part of landline/ mobile and internet, if you use it for both business and private

Entertaining customers, suppliers, and clients

Repayment of interest on a loan

Business gifting for entertaining

Donation amount

Late filing penalties, motor fines, and similar expenses

An Icing on the Cake

We provide a personal accountant for small businesses to help in:

Giving necessary tax advice whenever required

Managing your salary planning, dividends, taxes, and VAT issues

Filing PAYE, VAT, corporation tax returns, and annual accounts

Why Choose GM Professional Accountants?

We provide accounting software as default in our all-inclusive monthly packages. You can quickly manage your routine bookkeeping activities on your phone app or computer. You need not postpone your work till the end of the day as you can do these activities online on this software. For instance, send invoices and record receipts online.

We take care of complex and time-consuming activities: E.g., Preparing P&L account; Checking business cash flows; Checking if business finances are in a strong position; Filing tax returns, etc. The best part of associating with us is that you need not spend hours together in front of mundane spreadsheets.

We have offices in London, Manchester , Birmingham and Essex.

Tax-Efficiency

Small entities need to keep as much of their earnings as possible to maintain positive cash flows and be profitable in business. We can help you make this possible by advising you about ways to keep your business accounting in line with HMRC rules. You will end up paying as few taxes as legally feasible because we ensure that you retain more of your earnings.

Top Tips for choosing an Accountant for Veterinary and a Vet business

Accountants Guide for Veterinary and Vet business

Today, many professional services are outsourced, we are all so busy that we focus on our own area of expertise and find it impossible to make time for day-to-day financials. So it makes perfect sense as a vet or veterinary nurse to use a specialized firm of accountants to handle business finances, insurance, tax, and all other money-related things. This leaves you totally free to restore the health of our pets and manage other professional challenges.

Find out more

When Planning a Veterinary Practice

The structure of a vet practice is complicated, so it is important to plan it correctly from the beginning to make the most of your deductions. Involve your vet accountant from the start and they will explain the best structure to you.  You can choose from a Limited company, sole trader or a partnership.

Meals and Travel Claims

  • When you work back often at night, or on weekends you will be paid an allowance by your employer for meals. Although you can claim meals without receipts, if you show a calculation, it is better to keep the receipts. In fact, keep all work-related receipts and then hand them to the accountants and let them work it out.
  • Accommodation and travel to nonlocal conferences are also claimed, as is travel between two different jobs.
  • Another claim is transport usage, including driving your own car for work, tolls, taxis and all public transport.
  • Home visits to clients’ animals.
  • When using your own vehicle, always use a mileage sheet that you keep in your car for work-related travel, then at the end of the year, you can submit the form to the accountants to calculate reimbursement.

Work Clothing

Often a uniform is required for work in a veterinary practice, and you may wear ‘scrubs’ or a white coat! Uniforms are expensive, so if you are required

to wear one as part of a team, by company policy, this will be another tax claim at the end of the year.

A work uniform may have a logo or an identifying emblem on it and is something that can’t be worn away from work.

Uniform Claims Include

  • PPE (personal protective equipment). this may include gloves, face shield aprons, and boots.
  • Laundry dry cleaning and repairs to your uniform.
  • UV skin protection, sunglasses, and a hat if working outdoors.

Training for the Workplace

You will be required to attend work-related training, and to pay for it. You may be the office WH&S (work health and safety), representative and this requires annual retraining with additional modules, often LMS online from home. Any books purchased related to training can also be claimed.

What is not Covered

You cannot claim HECS help fees.

But if you are doing an ongoing University or TAFE work-related course, you can claim the fees for that course, also the books and stationery.

Tools and Equipment in the Workplace

Buying and repairing equipment used at work, like specialized surgical equipment, computers, and phones electronic diary.

Other Expenses related to Work

Any professional membership

Insurances, all professions are required to be fully insured, and to have certain practicing certificates that are renewed annually. These expenses can also be claimed, says you may also be able to claim a deduction for reporting, plus gifts and donations.

Personal superannuation. If you have concerns consult your accountant, as it will be better to hand all this over to him/her.

Telephone and Internet Services

When you are making phone calls from home or your personal mobile keep a diary, for a month and then the accountant can aggregate the figures throughout the year.

You can only claim a proportion of monthly fees that relate to your work perhaps including email and training (LMS).

Other Expenses

There are other deductions that can be claimed by all employees, and your accountant will want to claim some of these as well.

  • If you are donating regularly to a charity just give an amount and get a receipt. Don’t buy raffle tickets, as if you receive something in return it negates the deduction.
  • Deduct bank fees on investment accounts.
  • You probably have income protection insurance and accident insurance. Your accountant can deduct this insurance or a part of it.
  • Keep all receipts that may be deductible, and when you have a meeting with the accountant you can ask them.

Tax Changes

Last year in the UK and many other countries there were some interesting changes to taxation rates. Amongst the changes were.

  • A married allowance for transfer for basic rate payers
  • Changes to Mileage rates.
  • Changes to business deductions.
  • Corporation tax rise coming in 2023

This type of income relief was bought in to stimulate the economy during the Covid shutdown, and to a larger extent, it seems to have worked.

This was combined with general tax cuts for the public, that were given to all working people.

Advantages of using a GM Professional accountants. 

  • We will have a better understanding of your structure and finances.
  • We  can monitor the performance of your vet clinic and suggest changes.
  • Good advisory services for you and your staff.
  • Enforces certain standards

Conclusion

Because everyone in your Vet practice is so busy, there is never enough time to spend monitoring your finances. In fact, they are much better monitored by your specialist accountant who brings a financial perspective to everything he does. This will free you up to do your real work, and if you become bogged down in financial administrative stuff you will lose a day a week, and that is a waste of professional time for you and your team.

Accountants Guide on Bitcoin, Ethereum, Litecoin, Dash, Stellar

Accountants Guide on Cryptocurrency

One of the most common questions we are asked is: What are the taxes on Cryptocurrencys in the UK? and Why?

As more and more investors are dipping their toes in the crypto market, people across the UK are now turning to this market as an exciting opportunity. Whether you are a seasoned investor or a first timer, understanding the potential use of these Coins is important before you consider investing.

View our packages Find out more

#1. Bitcoin (BTC)

Ever since its launch by its mysterious founder Satoshi Nakamoto back in 2009 bitcoin commonly known as the king of currencies as work this way to the top of the pile. it remains to cryptocurrency of choice for investors both in the UK and around the world. Part of its attraction to investors is that it works on a straightforward proof of work algorithm. Traders need to solve complex computational puzzles to create new bitcoins and to verify each transaction. Once these have been solved, they issue a certain number of bitcoins as a reward.

Mining bitcoin is just one way to get it most people simply buy it using their fiat currency on the variety of different cryptocurrency exchanges such as eToro and Bi-nance The fact that bitcoin was the first cryptocurrency in the world probably helps with its popularity many products who get their first 10 to corner the market

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Subscribe to our channel for the latest updates.

Subscribe Now

Mining will be considered as income in the tax year. which runs from the 06/04 – 05/04.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

#2. Ethereum (ETH)

Currently, priced at nearly $2,000 Ethereum is the world’s second most popular cryptocurrency and has a market capitalization of over 50 billion. And you can only for 17% of people surveyed showed they had heard of Etherium and recent data show it to be the fourth most popular traded currency in the UK. Working on a blockchain platform Ethereum carousel transactions by using smart contracts. Find coding terms of agreements these smart contracts are automatic meaning that the price you’re paying and the price the other person is receiving are always identical. Similar to bitcoin Ethereum can be mined, but it also operates the payment system in an incredibly secure and transparent fashion. Keeps much of his popularity didn’t you to the fact that third-party organizations like it as it avoids having them being dependent on banks.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

3. Bitcoin Cash (BCH)

Piggybacking on the popularity of bitcoin, it’s hardly surprising that bitcoin cash remains one of the most popular cryptocurrencies in the world and the third most popular in the United Kingdom. First launch back in 2017 based on the back of some concerns surrounding bitcoin and scalability bitcoin, cash has no upward limit. It operates as a peer-to-peer payment system its current market cap. Is nearly 5 billion. Early on many people jump from bitcoin to bitcoin cash as they believe this to be a disruptive competitor.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

#4 Litecoin (LTC)

One of the earliest old coins litecoin was first launched back in 2011. It operates as a faster and cheaper alternative to bitcoin, as a new block took less than two-and-a-half minutes to process when compared to the 10 minutes that bitcoin took. This speed is primarily the reason that her remains among the most popular coins on the market today and still lists in the top 10 most popular cryptocurrencies in the UK. one of the core benefits of litecoin is its ability to support over 80 million coins it’s roll out of the role-playing game light-bringer that runs on their blockchain has did initially lead to a surge in litecoin transactions even to the stage where 75% of all transactions for one’s caused by the game. This is no longer the case as litecoin continues to go from strength to strength.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

5. Dash (DASH)

Dash was first launched back in 2014 when it was initially known as X coin and then renamed itself to Darkcoin and eventually it was rebranded to dash coin. Its purpose was to provide a day-to-day cryptocurrency that people could easily use. Currently trading at $220 a share under the market cap of 2.2 billion- as quickly become one of two largest cryptocurrencies in the world. When compared to between cash and Litecoin, Dash actually solve some problems that bitcoin created. Including its inability to deal with multiple transactions, it’s slow speed, and it’s ever increasing transaction fees. Investors in the UK continue to study DASH carefully as many online merchants are already accepting it and dash ATMs are popping up all around London.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

#6. Stellar (XLM)

Launched by one of ripples co-founders Jed Michaela back in 2014 center is designed to be a decentralized open source payment network. Its currency is known as the lumen and is comparable to how XRP or ripple powers ripple net, ethereum is powered by either. The whole stutter network and its functionalities are powered by lumen. They attract investors to this cryptocurrency because of its impressive list of real-world applications it’s also built a significant number of premier power partnerships ever since it’s released. Two of the most impressive pirates collaboration with Deloitte and IBM. As decentralized finance services are becoming increasingly popular, stellar is going from strength to strength and looks like it has a significant part to play in the future of cryptocurrencies.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

#7. Ripple (XRP)

Ever since its launch ripple, XRP has remained one of the most traded and popular cryptocurrencies, both in the UK and around the world. It’s been around since 2012 however in recent years it’s nearly tripled in volume. XRP with a market cap of over 12 billion is the fourth largest cryptocurrency in the world. Compared to cryptocurrencies that are completely decentralized, ripple continues to partner with larger institutions as its early purpose was to allow big businesses and Banks to conduct real-time payments across borders. Much effects popularity is because of its backing by major institutions such as the two listed above and others including Santander and JP Morgan. With government regulations inevitable soon, many people believe XRP is ideally placed into provide a control for the sale and use of cryptocurrencies.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

8. Tezos (XTZ)

Texas despite an early surge after its initial ICO in 2017 when it raised over 200 million dollars breaking many records it had a rocky performance for the past 3 years however an experience a Resurgence in late 2020 and as remain one of the UKs most popular cryptocurrencies among many of his more seasoned traders

As more and more cryptos have been subject to audits, Tezos continues to score highly built on the premise of a model that provides unchained governance it has built-in protections against issues such as chain reorganizations and selfish baking. This high level of security is being one of the primary reasons that it remains one of the most popular League traded cryptocurrencies in the UK

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

9. Cardano (ADA)

Cardano/ADA remains one of the top 10 most popular cryptocurrencies in the world. They base Cardano upon a platform that provides proof state for blockchain. I found it by some Ethereums early co-founders ever since it’s launched it has steadily become one of the most popular cryptocurrencies in the UK. 88 is the term most commonly used to refer to cardano’s native currency and it was founded on the premise that it could be used to both receive and send secure cross-border digital funding. It uses smart contracts similar to those used by ethereum however its primarily focused was to overcoming some problems that people perceive exist with bitcoin and Ethereum which increases its overall popularity in the UK.

Cardinal is a third generation cryptocurrency, meaning it was has had several years to observe its competitors and improve on many of the faults that impeded their growth. This makes Cardano an exceptional investment opportunity for many UK traders. While it’s still a relatively new concept, it quickly jumped into the top 10 and has continued to become more and more popular. Experts believe Cardano will succeed while many first generation offerings rush to market will fail.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

10. IOTA (MIOTA)

Last but certainly not least the cryptocurrency has quickly become one of the most popularly traded in the UK. IOTA is built as an open source ledger and it was first launched in 2015 it helps facilitate transaction between the internet of things network and computers. Its market cap has reached over 3 billion and it’s currently trading as one dollar and 15 cent. They design the algorithm that provides proof of work for iota to help verify transactions while charging no transfer fees. This makes it hugely attractive for businesses in the IoT industry who have long been suffering because of overly inflated transaction fees. Unfortunately, in the last few years iota has been subject to several hacks this has resulted in severe downtime and rethinks by its founders. However, these hikes have not resulted in its popularity floundering shape or form in the UK. Find that it attracts more experienced investors who have a long and well-developed trading strategy based around a strong risk management makes IOTA and interesting long-term HODL.

Tax Implications 

This depends on the nature of the business, whether it is considered as a trade or a gain. The capital gains tax allowance is £12300.

Allowable expenses 

If considered as trade there will be more flexibility on the expenses and if considered as a gain then only the incidental expenses are allowed.

Buy-To-Let Company accountants guide

Buy to Let company accountants guide

HMRC have imposed restrictions on income tax relief on finance costs for buy-to-let properties. You may wonder: Is it now more beneficial to buy personally or via a limited company in the wake of these restrictions?

With effect from 6 Apr 2017 for 2020-21 taxation year, you cannot claim a deduction for finance costs from your income from a property while calculating your taxable profits if you own a buy-to-let property in your name. You will only get a tax reduction at a base rate towards finance costs from your total income tax liability.

Find out more

It has now become a game-changer regulation for landlords. They introduced the new regime phasing in over four years:

Tax Year Finance cost deduction from property income  Basic rate reduction from IT liability

2017-18                75%                                            25%

2018-19                50%                                            50%

2019-20               25%                                            75%

2020-21                0%                                            100%

Therefore, owing to the above changes, it has recently become beneficial to buy a buy-to-let property through an SPV limited company instead of buying as an individual.

Recent research reports suggest that corporate landlords now own about 20% of rental properties. It has become more popular in the capital region. Company landlords now own more than 25% of rental homes in London.

Purchasing under SPV Limited Company

Buy-to-let landlords can now buy the property through an SPV limited company where the shareholder and company directors become the investors.

This route brings instant benefits to landlords. At present limited companies can offset entire mortgage interest expenses against rental income profits. They pay corporate tax only on the balance profits. The corporation tax rate is presently 19%.

Transferring a buy-to-let property to an SPV Ltd. Company

If you own an existing portfolio of properties, it is now possible to transfer the ownership of your portfolio to an SPV limited company.

You will have to consider any such transfer of property at the market price. It implies that you may incur additional costs towards stamp duty, capital gains tax, legal charges, and mortgage/valuation fee.

It is essential to note that maintaining a limited company involves a few costs, including its running expenses and fees towards legal obligations like filing of statutory accounts periodically. But at the same time, you stand to gain in terms of some tax-deductible expenses: mortgage broker fees, accountancy fees, and lender arrangement fees.

The next question is how to draw funds from your company. You can withdraw money by way of dividends and salaries.

Dividends

A business can pay a dividend from profits left after the corporation tax payment. However, the respective recipient shareholder needs to bear a further dividend tax on receipts above a 2,000 tax-free allowance limit for 2019-20. Remember that the limited company has already paid the tax on profits. Besides, the total annual shareholder income will determine the applicable dividend tax rate.

Furthermore, if the landlord does not require income to meet current personal expenditure, the limited company can reinvest retained funds to own other properties whenever any opportunity arises.

Summary

You require careful planning to reap the benefits of this regulation. In the short-term, the cost of transferring a buy-to-let property to a limited company may outweigh the expected benefits. The mortgage interest restriction took four years to reduce to base rate tax relief. Hence, landlords had ample time for planning. If you plan to keep the property for the long-term, it may be more beneficial to buy new buy-to-let properties for tax purposes directly in a company’s name.

If you require rental income for your regular living expenses, you will have to find ways to extract revenue from the company. However, this may partly or wholly nullify tax benefits you made by taking buy-to-let property in the company’s name in the first place.

You also have to consider that the company will pay corporation tax on the gains out of selling a property, whereas as an individual, you get annual capital gains tax free allowance limit of £12300 for 2019-2020.

Accountants for Gas Engineers Guide

ACCOUNTANTS FOR GAS ENGINEERS

GM Professional Accountants provide accounting and tax services for Gas Engineers. We have been providing accounting and tax advice for gas experts for several years.

Find out more

Our team of experienced accountants can help you identify the possibilities of tax relief that you can legally claim. It will allow you to take home more of your income while providing you with the confidence that you won’t get hit with a large tax payment at the end of the financial year.

ACCOUNTING & TAX SERVICES

We charge a fixed monthly amount to our clients without any hidden costs for providing a range of accounting and tax-related services. It benefits you with the confidence of optimum tax payments, higher disposable income, and peace of mind due to full and timely compliance.

1. We help you complete your tax returns, tax calculations, and statutory accounting requirements.

2. We provide online access to our portal to invoice and log the expenses for a convenient recording of details.

3. You can update your accounts instantly using online accounting software from the leading brands available out there.

4. Our job is to ensure that you always fulfil your tax obligations in full, thereby maximizing the capital allowances.

5. From time to time, we give structured advice to improve tax efficiency in your professional practice.

6. We always ensure your 100% compliance with relevant legislation and its latest amendments.

7. We provide full assistance in preparing your annual accounts with periodic accounting statements, including the balance sheet and your Profit & Loss account statements.

8. We provide help in installing, managing, and maintaining your payroll and book-keeping systems.

9. You can improve your business cash flow management to suit your business needs.

 

CLAIM BUSINESS EXPENSES

You may not be aware, but there is a wide range of expenses that you can claim in your accounting and tax returns to optimize tax payments. We have drafted a comprehensive list of all types of possible business expenses that are admissible as an allowable business expense for tax purposes. However, the list is indicative and not exhaustive.

1. Landline phone bills for business use

2. Internet and Mobile phone bills for business use

3. Materials used for your work

4. Repairs and maintenance of equipment

5. Protective clothing, e.g., boots and overalls

6. Laundry & cleaning charges

7. Interest on loans taken for running the business

8. Postage & stationery and Computer consumables

9. Replacement tools

10. Trade Magazines and trade subscriptions

11. Fuel for vehicles

12. Road tax, MOT, and insurance premium

13. Hire Purchase interest on business assets

14. Advertising

15. Bank charges on the business bank account

16. Leasing of plant & equipment

17. Vehicle leasing

18. Accountancy fees

19. Traveling expenses and Fare

20. Parking & Tolls

21. Vehicle running costs

22. Sustenance (if working away from home)

23. Wages 

24. Use of home as your office: work from home 

25. Other miscellaneous items

WHY SHOULD YOU CHOOSE US?

We have provided services related to accounting and tax for many years for Gas Engineers, focusing on their specific needs. We offer unique services to our clients as follows:

1. LOW COST & QUICK

You can choose from two convenient options for fee payment, whichever is best for you. We provide both fee payment options of monthly fee or hourly rates. We are also flexible to offer a comprehensive package for an extended period, covering all sorts of accounting tasks.

2. ACCOUNTING SOFTWARE HELP & ADVICE Our team of skilled accountants can set up all the leading accounting software so that you get the maximum mileage out of it. We offer our services to work with top accounting software brands like Xero.

3. TRUSTED ONLINE ACCOUNTANTS We have provided our trusted services for several years to deliver the best customer service with our years of experience in accounting and tax services. Most recently, our esteemed clients have chosen us as the number one accounting firm on Google Reviews.

Starting a business while employed legal in the UK

SETTING UP A LIMITED COMPANY WHILE IN EMPLOYMENT

Several people aspire to start their own business, but they feel stuck in a full-time job. They intend to break the chains which hold them to employment and prevent them from doing something different.

Besides, it is quite challenging to set up a new business. It is unchartered territory, and you need to consider many factors before venturing into the unknown. In a scenario where you work full-time for a company and plan to set up a new venture, such pressures can be quite intense.

Find out more

Subscribe to our channel for the latest updates.

Subscribe Now

REVIEW YOUR EXISTING EMPLOYMENT CONTRACT

Before taking an important decision to start a new business while in employment, we highly recommend going through your job contract to check for unfavourable clauses. You may watch out for any terms and conditions that may prohibit you from starting any business while working for the organization. Moreover, there is a possibility of some conflict of interest too.

CONSULT THE HUMAN RRESOURCES DEPARTMENT

In such a situation, you may consult the HR department of your company. Usually, responsible HR handles such inquiries with the utmost care by ensuring confidentiality. You needed to be extra cautious about finding out that you don’t breach your employment contract inadvertently. It is the last thing that you would like to happen and face unwanted termination notices.

If you don’t have so much time to research all the ifs and buts, we suggest you download our entrepreneurship guide here, which provides several more tips for people like you who intend to begin their freelancing career.

HAVING THE INTEGRITY

Several stealth startup aspirants never discuss their business ideas with their bosses. They quietly keep working on their business ideas. They put in their papers the moment they feel that their new business can support them financially. It may seem to be an attractive way of going about your new business but let me tell you that it is not a correct strategy.

We always recommend aspiring entrepreneurs to discuss with their bosses. Remember that starting a new business can change your employment status. You may not keep your activities confidential for long. If you register yourself as a director of a limited company, it becomes public information. An apprehensive employer can search about you on the Companies House website and find the truth about your new business almost instantly.

But nowadays, employers are becoming supportive of their employees who have business insights. They even help employees in realizing their dreams. It is becoming more of an exception than a rule to support staff running side-projects. You may try to explore your work benefits. Ask your employer if they can allow flexible working hours or reduce the number of working hours. They may agree it will not affect your day to day work.

WHO SHOULD YOU TELL?

It is natural to feel excited about starting your own business, and you would like to share your experiences with someone. It is your individual decision to tell your co-workers or not. They may not be supportive or discourage such behaviour. They may also be jealous of you, and it could lead to conflicts. However, it may be precisely the opposite as well. They may support and encourage you and help out of the way. You need to take a call as per the circumstances.

WORK WITH OBJECTIVITY

You may be super excited to leave your full-time job to devote more time to your business. But don’t forget that you are still working for that company. It would help if you showed full respect to your colleagues and bosses. Never work on your business idea during office hours. Never burn the bridges. Keep good terms with your colleagues and employers. You don’t know what will happen in the future, and you may have to fall back upon the same set of people for support in an emergency.

PLANNING WORK AND LIFE BALANCE

It may be quite challenging to juggle between two jobs. Ensure a balance between work and life by finding time for your loved ones, friends, family members.

If you work overtime, you may damage both your job and business. If you devote more time to one of the two, you are sure to harm the other. If you somehow fail in business and want to rely on the job where you have been underperforming. It will be so stressful. That’s why you should maintain a work-life balance that suits you. You may choose to devote a week a month or evenings or weekends. Whatever it is, ensure to allocate some time for family and yourself to relax and recharge.

GM Professional accountants have offices located in London, Birmingham and Manchester.

Accountants confirmation statement filing tips

Accountants confirmation statement overdue filing tips

WHAT IS A CONFIRMATION STATEMENT?THE DEFINITION OF A CONFIRMATION STATEMENT

The confirmation statement is an annual mandatory submission requirement for all the LLPs and limited companies. They have to file these confirmation statement documents at the Companies House every year.

Find out more

The submission requirements are slightly different for both types of entities, as mentioned above. For instance, if it is a company, the confirmation statement must include its directors’ and shareholders’ required information.

On the other hand, if you talk about LLPs, the confirmation statement must list all its members’ relevant details.

However, for both the LLPs and limited companies, the confirmation statement document also needs to mention the business’s registered office address, in addition to other information.

Earlier, these entities used to file the return at the Companies House annually. Mostly, they used to submit the said return on the anniversary date of the business’ incorporation. Now, the confirmation statement has taken the place of such annual returns.

Confirmation statement at companies house

The confirmation statement also provides critical business leadership statistics like the details they used to provide in their annual returns.

The statement document provides a yearly summary of its management and business owners. The confirmation statement submission requires payment of yearly filing fees along with all the details mentioned above.

Please note that this confirmation statement is a document that is entirely separate from the business accounts.

Similarly, it is also not to be confused with the company’s corporation tax returns.

SUMMARY OF WHAT IT INCLUDES:

* · The details of directors and shareholders (For Companies)

* · The list of members (for LLPs) * · Registered office address (For both companies and LLPs) SUMMARY OF ITS SALIENT FEATURES:

* · The directors or members file it annually, typically on the anniversary date of incorporation

* · Replaces the erstwhile annual return

* · It includes a summary of its management and owners

* · It requires payment of yearly filing charges

* · It is separate from Corporation Tax return or business accounts.

FREQUENTLY ASKED QUESTIONS (FAQS) Here are the two most important frequently asked questions about the mandatory submission of a confirmation statement to the Companies House every year.

Q. WHAT’S THE DIFFERENCE BETWEEN THESE TWO TYPES OF DOCUMENTS: AN ANNUAL RETURN AND A CONFIRMATION STATEMENT? ANS.

There are three critical differences between the earlier system of filing annual returns and the existing system of submitting a confirmation statement document every year.

1. TIME OF FILING THE DOCUMENTS Earlier, the companies used to file the annual returns on the date of incorporation. Now, the directors or members of a limited company or LLP have the flexibility to submit the confirmation document at any time. The only condition applicable is the time limit of 12 months and 14 days. They must submit the confirmation statement to the companies House within the set time frame of a little more than a year.

2. SUBMIT ONLY THE CHANGES DURING THE YEAR It is one of the most important differences between the two. Earlier, it was mandatory to file the annual return every year even if there was no change in the information. The directors or members of listed companies or LLPs had to report the same details every year, even when there was no change.

But in the case of confirmation statement, the company can now submit a simple note stating that there were no effective changes this year. It is now acceptable to present only the changes or a statement of no changes in the said period.

3. PERSONS WITH SIGNIFICANT CONTROL Finally, the confirmation statement stipulates the submission of a PSC list (persons with significant control). The persons in this list are those people who may not be the directors, but they may be having a minimum of one-fourth (25%) stake in the business. Earlier, there was no such requirement in the annual return.

Q. WHAT HAPPENS IF THE COMPANY FAILS TO FILE THE CONFIRMATION STATEMENT IN THE STIPULATED TIME? ANS.

As such, there are no penalties for the late filing of the confirmation statement. Still, if you fail to submit the confirmation statement to the Companies House, it may initiate legal action. The Companies House is free to take such legal action against the directors, and in extreme cases, it can also strike off the company name from its register.

Please note that they take such legal action only if the directors or members do not file the confirmation statement after the due date.

Gm Professional Accountants can help you file your confirmation statement.  We have offices located in London, Manchester  Birmingham and Essex.

ALIEXPRESS DROPSHIPPING ACCOUNANTS GUIDE

ALIEXPRESS DROPSHIPPING GUIDE

If you wish to do an e-commerce business where you don’t have to worry about inventory or shipping issues, then dropshipping is the best way to go.

Find out more

Dropshipping is a straightforward business where you can list the products for online sales and send an email to ask your supplier to directly despatch the product to the customer on your behalf whenever you get the order. It is as simple as that.

Dropshipping may appear to be the easiest way to start an online business on e-commerce sites, but you may find it challenging to search for dependable suppliers. You may have to dig deeper online to find such reliable suppliers. You can choose from millions of items for online sales from the AliExpress site for your dropshipping business.

WHAT IS ALIEXPRESS?

AliExpress is a huge e-commerce portal where you have a choice for millions of different products. The suppliers of these products offer competitive prices on AliExpress because most of them manufacture their products overseas. You can get all the products under one roof. The range of products on AliExpress has a wide variety, including women’s clothing, electronic items, jewelry, home and so on. If you have already decided to sell products through e-commerce, AliExpress is an excellent source for supplying a comprehensive range of products.

WHAT IS ALIEXPRESS DROPSHIPPING?

If you wish to do an online business where you don’t want to worry about inventory or shipping problems, then AliExpress can help find the products you want to sell on your e-store. You can choose the product you wish to sell from the AliExpress site and add them to your store. You are free to decide your sales price by adding your profit margin. As soon as you receive an order, AliExpress immediately despatches the product to your customers, and you will only pay the wholesale price for that product.

WHY ALIEXPRESS FOR DROPSHIPPING? AliExpress can also work as an online retailer, but most sellers on this platform know very well that many of their customers are resellers. Those resellers want to sell products through dropshipping. Secondly, the dropshipping business is relatively more straightforward through the AliExpress platform. Since it does not charge you anything upfront, you can take a calculated risk by choosing any products. The financial commitment, in that case, will not be significant. You can start the dropshipping business today itself with only a view clicks through Oberlo. It helps you quickly find the products you want to sell and add them to your online store.

ACCOUNTING SERVICES FOR DROPSHIPPING

Any company engaged in the online sales of products which is a registered limited company needs accounting services as follows: abbreviated accounting and statutory accounting for the company.

Corporation tax including CT 600

The statement regarding compliance with payroll and pension requirements

A self-assessment return for Director’s tax

Filing of VAT returns along with bookkeeping every quarter

Statement of confirmation

TIPS ON CLAIMING ALLOWABLE EXPENSES FOR E-COMMERCE BUSINESS

Please find below a few of the top tips to claim the expenses incurred for an online e-commerce business:

You should ensure to maintain a proper record of all the costs incurred in the e-commerce business.

You can claim the expenses of hiring a professional accountant or using accounting software as a business expense in these three categories: Tax preparation expenses, tax filing expenses, and accounting expenses.

The claim of travel expenses includes the costs incurred by either the business owner or its staff to travel for sourcing products or deliver the products to the post office or the courier office.

You can include courier charges and taxes for your sales in the shipping cost.

You can claim internet service expenses, computer systems, stationery expenses, furniture, and other such expenses as office expenses.

In the manufacturing of products, you may include all the expenses to manufacture, e.g., raw material, tools, and cost of other supplies.

If you use some portion of your house exclusively as a home office, you can claim a deduction for the home office.

The business owner can also claim damaged or returned products as expenses. For this purpose, the owner needs to maintain the records of opening and closing stocks for the financial year.

The expenses also include e-commerce charges, bank charges, PayPal fee, postage expenses, and reselling related costs

GM Professional Accountants are located in London,  Manchester and Birmingham.

Accountants Guide for WRITERS AND AUTHORS

ACCOUNTING SERVICES FOR WRITERS AND AUTHORS,  self employed.

We have specialist accountants who can submit accounts for writers and authors to HMRC. We provide accounting services for full-time writers and even for occasional writers. We do our best to learn about their account status and optimize their tax liabilities.

Find out more

The foremost question to answer is whether you are employed or not. You are most probably self-employed if you are not working for publishers or news companies directly.

Our tax experts team will find out whether they can consider your income from self-employment as a trading income or not. The team handles your account directly to ensure that if any tax payment is due. They pay due taxes two times in a year by choosing the self-assessment system of tax payments.

In case you work as a writer or author for an employer, our team ensures that your employer correctly deducts taxes at the source. Moreover, if you have several income sources, our tax experts help you in declaring them correctly.

If you handle many contracts in the UK and abroad, we depute a dedicated accountant to manage the accounting activities. The team also ensures two essential things: secure payment of due taxes by optimizing the tax payments and ultimately ensuring that you comply with the taxation laws. Nobody would ever like to get into HMRC investigation problems. However, it is quite possible to put yourself into trouble because the UK taxation laws are too complicated. We work intending to provide peace of mind to our clients.

HOW TO WORK OUT YOUR TAXES?

If you are working as a writer, you may have several income sources. They may include the income from writing books or writing ad-hoc articles, or even copywriting, and we account for all of those income sources. It is vital to understand that HMRC wants to classify taxpayers rightly as employed or self-employed. Our tax experts help you register in the correct category since HMRC has clearly defined the precise rules to determine the right position.

In rare cases, some writers and authors fall under the category of “Reserved Trading Income Status,” which they earlier referred to as “Reserved Schedule D Status.” They will be deemed self-employed and will continue to be taxed accordingly to discharge tax payments properly by ensuring no possibility of any employment break.

THE ALLOWABLE EXPENSES FOR WRITERS AND AUTHORS TO CLAIM?

An Expense refers to something essential to operate the business. Below is a list of allowable tax deductions for writers and authors from their tax liabilities.

* · MARKETING COSTS – Business cards, reprints of your work
* · WEBSITE COSTS – Hosting a website and maintaining it to promote your working
* · TRAVELING EXPENSES – Train tickets, petrol costs, etc
* · ACCOMMODATION – Hotel expenses for overnight stays for business purposes
* · COMPUTING EQUIPMENT – Laptops, printers, and editing software
* · INSURANCE FOR THE ABOVE COMPUTING EQUIPMENT – To protect your livelihood
* · COMMISSIONS – Fees paid to literary agents

For a self-employed person who works from home, we can suggest to include household expenses which you can attribute to your business. Those costs include fees for heating, phone service charges, a room used as your office, etc.

DOUBLE TAXATION AGREEMENTS

The UK government has double taxation agreements with several other countries. As a taxpayer, it is your responsibility to optimize the taxes payable in those countries. We provide guidance and assistance to authors and writers for avoiding double taxation. If you do not prevent or reduce your taxes in time, HMRC can refuse to give any relief later. Our expert team ensures that such a situation never arises.

If the other country does not fall under the double taxation ambit, we suggest you ensure full compliance and thereby help you avoid excess tax payments.

THE COMMON PITFALLS

Taxpayers usually make a common mistake of showing income net of VAT or any commission to agents. It is a wring practice. You should always declare gross income and show such commission and VAT expenses separately and claim as a deduction from such income.

Last year, we detected a new type of problem of new cash basis. HMRC referred to it as simplified expenses. If you opt for this, you cannot set-off losses against other income and limit some claims to costs. The earning basis provides more flexibility, which implies that you declare the income as earned instead of received and declare the costs as incurred instead of paid.

BREXIT E-COMMERCE AMAZON CHANGES

POST BREXIT SCENARIO FOR SELLING GOODS ON AMAZON

Amazon’s July communication is a reminder to its merchants regarding the Brexit legislation regarding change of the fulfillment conditions. The Brexit policy and its effects are not the topmost priority on Amazon sellers’ minds, but it is high time that they must do something about this changeover and work out the options before them.

Find out more

What changes are coming for the E-commerce businesses

The United Kingdom decided to exit the European Union officially and is approaching the fag end of this transition. Consequently, we will see a dramatic shift in the UK and the EU’s business activities after December 2020. Amazon has begun to inform the merchants about the actions needed to make necessary adjustments per their FBA (Fulfilled by Amazon) program.

Brexit VAT
Brexit VAT

There are many repercussions of this Brexit related notice of Amazon. We have analyzed Amazon’s communication on 14 Jul 2020 to understand its exact business implications. We have also tried to address cross-border sales and chalk out the steps after completing the Brexit transition.

The EFN (European Fulfilment Network) of the UK & the EU will not work anymore.

If you served your customers with the help of the EFN, it might not be possible to continue with it, both from the EU to the UK or the other way round.

UK’s fulfillment Brexit changes

Hence, you will not be able to send your products from the UK’s fulfillment center to EU countries. You can not work under the EFN system, and you will need VAT registration in the respective EU countries. Previously, the local fulfillment center shipments were eligible for the local VAT with a threshold of annual distance-based slabs.

In the same way, if you intend to target the UK consumers by using an EU fulfillment center, you cannot do that from the EU now, and you will have to keep products in an Amazon fulfillment center in the UK with VAT registration.

The UK shall cease to be part of a pan EU program anymore.

Earlier with the pan EU program’s help, the sellers could service customers of the EU with quick delivery

schedules. After excluding the UK from these countries, it will have new business implications.

A merchant cannot use a UK fulfillment center to retail the goods in the EU market. Hence, Amazon has made it clear that the merchants will use the other six EU countries to reach the EU market.

These changes could have a cascading effect on your supply-side logistics. Like EFN, the merchants will have to bring goods to the UK or EU or the other way to reach UK markets. There will be a potential surge in your logistics costs, and you will be required to manage your inventories in several jurisdictions. Besides, you will pay VAT on imports twice. However, you can reclaim the import VAT by filing the tax returns.

The requirement of fiscal reps for VAT registration of your UK business

Fiscal reps are local units jointly or severally responsible for VAT payable to a business that is non-EU based. It will ensure compliance with VAT norms for business based outside the EU.

Our Amazon accountants have analysed that the pre-Brexit era meant no need for any fiscal reps. But post-Brexit, you may have to engage fiscal representatives in Italy and Poland. It has additional cost implications for the merchants, and they did not consider that while measuring market attractiveness.

A second EORI code is mandatory for bringing products to the EU.

EORI stands for Economic Order Registration Identification. It is an identification number for traders importing to the EU and the UK and also enables them to claim taxes from the country of VAT registration. A GB EORI code is required to import products all over the EU. It is valid until Dec 2020. With effect from 31 Dec of this year, no merchant can use the GB EORI code to bring goods into the EU. They will stop accepting your GB EORI code from 2021. The merchants will need to get a secondary EU EORI code.

Similarly, This mandatory requirement holds the other way round as well; if a merchant were working with EU EORI codes, you would have to get a GB EORI codes to begin to bring goods in the UK area.

VAT Accountants guide for Amazon FBA Sellers

VAT Accountants guide for Ecommerce Amazon FBA Sellers

Vat is a specialist area, the Vat accountants guide will provide you with an insight to deal some of the issues your Commerce business.

Find out more

Many businesses online are choosing the FBA Amazon plan. If you have an FBA (fulfilment by Amazon) Amazon business, then you will be well aware that once you hit a certain threshold you will need to register for VAT in the UK. As accountants we understand the varied rules (and yes it can be very complicated for those who have little or no understanding!). We have issued a mini-series of guides to help you through this minefield. This will help you understand the basics in terms you can understand as well as how VAT will apply to you as an Amazon FBA business.

Accountants for Amazon FBA
Accountants for Amazon FBA

We have been working with businesses on Amazon for a number of years and our clients are all over the world. Our expert knowledge of the VAT system, both in the UK and abroad, will help you wherever you are located. So, if you need a little helping hand or just need to understand a certain aspect of the complicated VAT system, we are here to help.

How Does VAT Apply to Drop Shipping?

There are different VAT rules for drop shipping businesses and they will be covered by a separate article as they are outside the scope of this article.

What is VAT when you are trading as an Amazon FBA Seller?

VAT (value added tax) is a sales tax that is applied in the EU and the UK. The tax is applied to certain commercial goods and services and there are different bands of tax. Not everything is subject to VAT, there are certain exemptions, however, trawling through the long list of what is and what is not applicable can be time consuming and difficult. Therefore, if you are an Amazon seller and you are above the threshold, you will need to charge your customer VAT. One of the issues with VAT as an Amazon FBA seller, is that you have to pay VAT on the price you actually sold an item (or service) for, and not just on the profit you make from the item. This can mean that if you only make a very small profit on an item (once you have paid your fees to bought Amazon for fulfilment), it can be swallowed up in VAT fees, as this tax applies to the actual sales price to the customer and not the profit made.

Do I Have To Register my Ecommerce business for VAT?

If you are in the UK, then you do not need to register for VAT until your turnover for taxable goods reaches £85,000 (in 2020). If you are not UK based, but you are an Amazon FBA business selling in the UK then you need to register for VAT immediately, regardless of turnover. The exception to that rule is if you actually own a UK Limited company, as that then follows the rules of UK based companies in terms of registering for VAT when you reach the threshold of £85,000.

VAT Rules For Non-UK or EU Amazon FBA Sellers (Overseas Businesses)

This is not as straight forward as it would seem. Basically, if you are an overseas business that is based in the EU, but you use the Amazon UK FBA warehouse to store your goods, then you will need to register for VAT immediately. However, if you store your goods in your own EU country rather than the UK warehouse, you will not have to register immediately for VAT but will have to pay tax on the value of sales to the UK. Many FBA Amazon sellers are located overseas in China, USA, etc., and they choose to store their goods in the UK warehouse for distribution to EU countries. This means that the majority of non-UK FBA businesses will need to register for VAT immediately in the UK, but can wait until their sales reach a certain threshold in other EU countries, before registering for paying Vat there. As this is a complicated ara, we will cover it in more depth in another separate post.

VAT Rules For UK Amazon FBA Sellers

UK based businesses do not need to register for VAT until the turnover reaches £85,000.

Voluntary Registration for VAT

If you are a UK based FBA Amazon seller then you can register for VAT on a voluntary basis, before your sales reach £85,000, however, it is not recommended you do this. This important aspect will be outlined in another article.

What is the UK VAT threshold in 2022?

The VAT threshold is £85,000 worth of annual sales in 2022. If your business looks like it will reach or cross this threshold in a 12-month period, then you will have 30 days to register, otherwise the business may be penalised. The moment the business has sales of £85,000 will be the moment VAT is payable, so even if you register a little late the VAT amount will be backdated to the applicable time. Read this article to learn more about VAT penalties.

How To Calculate VAT for your business?

Every business needs to complete a tax return every year detailing profit and loss. VAT returns are completed quarterly to ensure you do not get behind on payments and into a situation where you are unable to pay. The VAT return is sent to the HMRC.

VAT takes account of the following:

Input tax– this is the amount of VAT you are charged by your supplier or wholesalers, or it van be tax charged for importing goods into the country.

Output tax– this is the amount of VAT your customers pay you for each sale or service.

Rebates

It is possible to get a rebate on any VAT that you have overpaid. This can happen when you pay too much output tax (ie when you have made a loss on a product). Usually, FBA Amazon sellers buy goods at a low price and sell for a higher price to make a profit, so you will pay less input tax, meaning you owe money to HMRC. It is important to check your business accounts regularly to ensure you are selling at a profit.

GM Professional accountants have offices located in London, Birmingham and Manchester.

Notice to deliver a company tax return letter Tips

Notice to deliver a company tax return Accountants 

 Company tax return defined

A tax return for a company can also be referred to as the CT600 form. This form is filed by companies and associations to report their expenditure, income, and the tax figures due to the HMRC. Companies are required to file their tax returns annually. However, there doesn’t exist any universal deadline for company tax returns like there exists for self-assessment tax returns for individuals. The reason for this is because companies have different accounting periods and therefore the filing of returns is done at the end of a company’s internal accounting period.

Find out more

 

Subscribe to our channel now for the latest updates 

Subscribe Now

 

Who needs to file a company tax return?

Anyone who runs a limited company must file for company tax returns at the end of the companies’ financial year. To enable the filing of these returns, one must first register with the HMRC. For sole traders and partnerships, all you need is to register for self-assessment tax. On the other hand, upon setting up a limited company, you must register with the company’s house for you to be able to start filing the returns. It is also at this stage where you will have to register your company for corporation tax and Pay as you Earn(PAYE) tax since your company will have employees who will be liable for PAYE tax. If you register your company through post through the use of third-party software or agent, the requirement is for you to register for corporation tax as a separate thing. Also, you should ensure that you have done the registration within 3 months after you have started doing business. This is determined by the selling, buying, advertising, renting premises, and having an employee. Once the HMRC does an assessment and determines that you are liable for corporation tax, it will send you a notice for the filing of a company tax return. Upon the receipt of this notice, you must send a company tax return regardless of whether you made a profit or a loss. Also, if you do not receive this notice and you are aware that you owe tax, you are expected to reach out to HMRC for tax assessment. Failure to contact HMRC will make you liable for prosecution for failure to declare tax.

How to file a company tax return?

Many people prefer to file their taxes online. To start, you need to have computed your companies’ taxable profits for the period. The taxable profits are computed by deducting tax allowances and business expenses from the total company’s income for the period you are reviewing. When making the company’s first return, you should create a new user ID on the HMRC website and proceed with the prompts. Paper CT600 form is only applicable to Welsh people and for those who have not been able to file their returns online. Also, the HRMC has written down a list of excuses that are reasonable for one to use this form. Once you choose to use this form, you must fill WT1 form which explains why you have chosen to use this form.

When to file a company tax return?

You need to file a return exactly 12 months after the end of your accounting period. In most instances, the company tax period is the same as the company’s financial year. However, in the first year of operations, the financial year may cover slightly more than 12 months and this is allowable. Most companies set up their financial year based on the month in which they were formed. In this instance, your financial year will run from the last day of the month in which the company was formed to the following year were 12 months’ end. If the accounting period covers more than 12 months you will be required to file 2 returns.

Cost of a Company tax return

The cost can vary depending on your activity. If your revenue is below the (85k) vat threshold you can expect to pay between £650 to £840 plus vat. This will include the yearly bookkeeping, Statutory accounts and the CT600. To produce the CT600, you will need to first complete the bookkeeping , accounts and then the CT600.

GM Professional Accountants Specialise is Corporation tax returns, we have offices located in London, Manchester and Birmingham.  

Dropshipping from China to UK VAT Tax implications

VAT Tax on Dropshipping from China to UK 

What Is Dropshipping?

Dropshipping is a very popular way of running a business if you do not have much capital for startup. By running a dropshipping business you do not have to pay for any stock upfront and you do not have to have large premises to hold the stock.

Find out more

How Does It Work?

You advertise a product for sale on your website and once someone buys it from you – you head over to the dropshipping wholesale website to purchase it. This third party receives the payment from you and they directly send the item to your customer. In order to profit from dropshipping you need to ensure you factor in the price of postage you will be charged and any vat or taxation.

Subscribe to our channel for the latest updates.

Where are The Dropshipping Companies Located?

There are many companies that specialise in dropshipping and these are all over the world. You can purchased an item in the same country as you want the item shipping to a customer, or you can buy from a foreign country and have the item imported to your customer.

However, bear in mind that if you choose a dropshipping company in the UK there may be vat to pay. Whether there is vat to pay and also the rate of vat to be paid can vary. In fact, vat may also change once Brexit has been completed, although currently the UK is still trying to thrash out an exit deal with the other EU countries.

Import And Export Duty

If you are dropshipping an item from another country, such as China, into the UK those goods may be subject to import tax. Again, not all goods are subject to import taxation. Usually, if there is import tax on an item it is paid by the customer receiving the item, although you can register your business as the importer. If you do this you will be liable for the vat but it can be claimed back at the end of the tax year when you complete your accounts. This is the preferred option as you can be sure your customers are not going to complain at having to pay an extra charge to have the item delivered. You just need to be sure that the price you charge your customer covers all your costs and adds a bit of profit for you.

 

Customs and excise require a label to be added to the outside of a package with a description of what is inside and the price. This determines whether duty is payable and how much.

Importing Goods From The EU To The UK

All countries have different rates of tax and import duty. Therefore, you will need to educate yourself on the differences before selling to customers otherwise you may find yourself out of pocket.

What If No-one Pays The Import Tax?

If a product is subject to import duty then it will be stored until such time as the tax has been paid, whether that is by the customer or the business selling the item.

Dropshipping from China to the UK

Basic principle

Section 7(6) applies to goods whose supply involves their being imported into the UK from somewhere outside the EU. Effectively the place of supply is determined by who acts as the importer. So if the supplier imports the goods into the UK, the supply to the UK customer is treated as taking place in the UK and so the supplier may be liable to register for VAT here.

However, if the UK customer imports the goods, the supply is treated under section 7(7)(b)as taking place outside the UK.

Chain supplies

Goods imported from a third country may involve a chain of supplies. For example

  • A may supply the goods to B
  • B then supplies them to C, and
  • C in turn supplies them to D.

At some stage the goods are imported into the UK and so the place of each supply will depend on who acted as the importer.

Good Customer Relations

It is important that you make it clear to your customer whether there is any import duty to pay, otherwise your business may suffer.

How To do Ecommerce bookkeeping for Small businesses

How To do your Ecommerce bookkeeping Xero and freeagent 

Bookkeeping is a process which involves the recording and management of every company’s financial transaction regarding any services or goods sold, purchased as well as payments made. Bookkeepers are responsible for tracking every cost and income to equip the company with data-based financial decision-making skills. Gm professional Accountants provide bookkeeping services for small businesses.

Find out more

Depending on your Ecommerce platform, there will reports that you run and export from your admin panel. You will need to review these reports and make decisions on the sales, expenses and balance sheet accounts. Also whilst posting these to the correct nominal accounts , there will the vat liability accounts and these will effect the vat return. This area requires expertise as the rule of the place of supply of goods needs to be determined and the distance selling rules.

The duty of bookkeepers also involves giving your business a holistic financial picture, balancing your accounts, and strategically making your business’ cash flow management better.

The fundamentals of bookkeeping

An account in business bookkeeping refers to all the debit and credit entry records of a particular type, for example, accounts payable or payroll.

Accounts are classified in 5 basic types

Assets: These are transaction-based resources or valuables belonging to a company such as inventory. These will be inserted from your purchase invoices.

Income or Revenues: This is money the company earns by making sales or offering a service. These will be determined for the reports in your admin panel.

Liabilities. They refer to any obligation and debt a company owes suppliers, lenders, banks, as well as any provider that provides goods and services to the said company, for example, loans, accounts payable.

Expenses: It is the cash the company releases for the payment of assets or services, for example, salaries, utilities etc.

Equity: It is the value of the interest of an owner in a company after the subtraction of all liabilities, for example, retained earnings, stock etc.

The ideal way of setting up small business accounting is to start with the setting up of each account individually. This will enable the recording of each transaction on its rightful category.

Your general ledger, as well as bookkeeping processes, will appear pretty different from that of the nearby ecommerce store. After all, common accounting methods differ based on different business needs.

The ideal way to do bookkeeping

1.Ensure that financial records stay maintained and updated: Bookkeeping is numbers-based work that deals largely with basic math and accounting. Differences in the type of bookkeeping work done depend only on your business type but tasks such as settling accounts receivable together with bank statements, financial transaction recordings, billing, invoicing and tracking payroll are more or less the same.

Other financial responsibilities on your duty will also include:

Incorporating tax in bookkeeping on the income, payroll, employment as well as in tax deductions for small business.

Budget planning to enable the company to sustain its growth

Gathering financial statements for stakeholders to explore! They include an income statement, balance sheets, cash flow, and equity changes.

Bookkeeping is not only about mastering numbers but also what the law requires from businesses. Provided you run a business that maintains regular auditing, considers ensuring that you have legally binding records together with deductions.

2.Monitor everyone’s activities especially spending

The time that goes into financial bookkeeping processes when it comes to ensuring that various financial transactions are accurate is worth mentioning. Besides, as a bookkeeper, you have to balance the books every day while tracking every payment that enters or leaves via employees.

The implication, therefore, is that in order to better equip yourself with bookkeeping and accounting know-how, your communication proficiency and organisation aptitude should be apt. This is necessary because your job description among other things involves collecting receipts from employees, handling travel expenses and reimbursements. This entails creating an easy-to-follow submission and reimbursement system to help record every transaction without missing any. That will assist you to bookkeep sustainably, accurately and in an up-to-date manner.

Comparing Double-entry bookkeeping with single-entry

In bookkeeping, the single-entry method involves recording business transactions whenever you deposit money or pay bills into the account of your company. Just think of how a check register is kept! This is a method that suits smaller businesses more, considering that their transactions are in small amounts.

With double-entry bookkeeping, all sizes of businesses and complexity are applicable. It is a method that involves making an entry into an account and in return, an equivalent and opposite entry is made to another account. Take for instance if you recorded a £100 income, then you will have to make two entries: (1) £100 of debit entry to raise your cash balance sheet and £100 of credit entry to raise the income statement of the revenue account.

FAQ on Bookkeeping

What does a bookkeeper do?

A bookkeeper is an individual who records and manages your company accounts and documents for all financial transactions. With bookkeeping, you can see the financial position of your business at any given time. Bookkeepers’ work is the reason accountants and auditors can easily see the financial health of your business.

How is bookkeeping different from accounting?

Bookkeeping involves making records of financial transactions whereas accounting includes not only recording financial data, but also categorizing, analyzing, reporting, and summarising it.

Gm Professional accountants specialise in online businesses, Our offices are Located in London, Birmingham and Greater Manchester. 

E commerce Accountants Guide for Sole traders

E commerce Drop shipping Accountants for Sole traders Guide

Operating your company as a sole trader is perhaps the easiest company structure to run in the UK. This type of company does not involve a lot of requirements when it comes to the filing and accounting requirements to operate it. This implies that a sole trader has less administrative obligations to fulfil in comparison with other company structures like a limited company.

Find out more

A sole trader uses their own identity to run the business and makes all their business liabilities their personal responsibilities. They are taxed personally for the profits they make in the business. A good example of a sole trader operated business is a market stall trader. They do not operate as a limited company as a limited company operates as a separate legal identity from those running it and therefore is liable and responsible for every business liability.

Another difference is that a sole trader considers the business profits theirs, personally unlike a limited company that owns its profits by itself. A sole trader has the right to access the profits the business makes at any time but a limited company’s profits may be used for paying salaries and dividends of its directors and shareholders.

Sole Trader Taxes

Unlike other company structures, a sole trader pays taxes on every business profit they make and these tax transactions take place through the personal self-assessment tax return of the sole traders. In the sole trader self-assessment tax return, the business owner completes the Self Employed sections. This puts the correct meaning of self employed in use. Instead of taxing their business profit, they tax it as their income. So, sole traders pay income tax and national insurance also applies to them.

Note that a sole trader is free to make a withdrawal of cash from their business and no tax will be due as a result. The reason is simple! The withdrawn money is already owned by the sole trader and they pay taxes on the entire profit or loss that the business makes.

Regarding National Insurance contributions, both Class 2 and Class 4 are applicable to a sole trader. The general charges for Class 2 NI are 2.85 per week meanwhile for Class 4 Nis, they go at 9% of profits from 8,164 and 45,000 at a 2% rate (applicable to 45,000 profits and above.)

Accounts guide for sole trader in an E-commerce business

ACCOUNTING

We can produce accounts out of your books every year-end. Our speciality is dealing with every statutory account and financial statement for any company and that includes:

Balance Sheet: It is a report of what belongs to you and debts you have to be pay or be paid at the close of the financial year. It is your Profit and Loss Account per year, containing the year’s sales and expenditure.

BOOKKEEPING

We are the go-to team to help you organise your books using the best in-house methods possible to help make your business finances crystal clear and easily manageable.

With all the vast experience in accounting and bookkeeping, we will process your data accurately and promptly to enable you to access the monthly reports and information we provide not only at year-end but throughout the year.

Apart from endorsing the use of Xero for your account management, our team is also proficient in Xero. However large or small your business is, we provide professional advice on how to explore the advantages it system offers.

VAT RETURNS

Our package also involves providing up-to-date advice to prepare you to be able to give the right report on Tax and VAT as per your business requirements. This will enable your business VAT return results to be a reflection of your respect for the relevant laws businesses within and without the UK follow.

E commerce Accountants for Sole traders operating as drop shipper

When operating as a sole trader and conducting a drop shipping business, it is important to register for self-assessment, the latest to date to register is the 05th October of the second tax year. It is also important to consider VAT,  as this is important and the place of supply of goods needs to be reviewed. What needs to be determined here is, who is the importer and liable to VAT.

Frequently Asked Questions

UK VAT: When is the right registration time for me?

Your right time to register for UK VAT is when:

  • As a UK business, the sales you have made on VAT have reached 85,000 in the past 12 calendar months
  • As a UK business, you have in the past calendar year surpassed any of the distance selling thresholds
  • As a non-UK EU business, you have surpassed the distance selling threshold for the UK
  • As a non-UK business, you aim to embark in selling products including drop shipping from a warehouse within the UK.

What should I do to optimise my tax bill?

There are several factors tied to the right answer to this question. So, reserve it for when you are set to use some cash from your business.

In brief, be sure to:

  • Claim every allowable expense
  • Claim every business allowance such as home working
  • Make the most of business expenses with benefits such as business mobile phones
  • And let your personal income determine how you optimise your pay

Gm Professional Accountants specialise in the E commerce sector and we have office in London, Manchester and Birmingham.

Accountants guide for companies house filing

Companies house filing accountants guide

Annual accounts

A company is expected to file its Confirmation Statement and annual accounts every year.

Find out more

In 2016, the regulations changed such that you now have to submit the Annual Return rather than the Confirmation Statement though the difference in the two is not that great.

The annual accounts include a Balance Sheet, Profit & Loss account, Directors’ Report and some explanatory notes. These have to be finalized and receive directors’ approval and then filed at Companies House nine months before the end of the financial year. You will also have to submit the corporation tax return alongside the annual accounts to the HMRC.

Small companies (usually anything with sales less than £10.2 million, although other criteria may also apply) can file abridged accounts. These are often easier to make, though directors will still have to get shareholder approval every year if they intend to file such accounts.

Whether they file abridged or full accounts, small companies can decide not to file the Profit & Loss Account or the Directors’ Report at Companies House.

Probably something that could be more relevant to many companies – Micro-Companies (any businesses with sales less than 632 thousand pounds though other criteria may apply) can prepare and file simpler accounts that meet the minimum legal requirements.

We recommend that any company with revenues less than 600 thousand pounds prepare Micro accounts as these are cheaper and simpler to prepare.

There are no fees for account filing and for the most part, small companies will file the minimum information required by the authorities.

However late filing fees are charged at 150 pounds if you are late for less than a month and £375 if you are late for anything less than three months. You will have to pay up to £1500 in fines for later payments that may even double if you are late for two consecutive years.

Learn more about micro-entities, small companies, and late filing fines from the Companies House Website.

 

Subscribe to our channel for the latest updates.

Subscribe Now

Confirmation Statement

Since 2016 the Confirmation Statement (CS01) replaced the old Annual Return. Data that needs to be submitted with the statement include:

• Directors’ names

• Registered office

• People that has Significant Control

The most significant change that came with the changes in 2016 is that businesses now have to keep a record of Persons that have Significant Control. In most private companies, such people would be the largest shareholders but, in the instance, where the constitution of the business vests trustee shareholders or non-shareholders significant influence over the decision making of the company, such people need to be listed on the PSC register. They also have to be recorded when the company files the Confirmation Statement.

A person that has significant control is an individual that:

• Indirectly or directly has more than 25 percent of all shareholding;

• Indirectly or directly has the prerogative to get rid of or hire a majority of directors;

• Indirectly or directly has more than 25 percent of the voting rights;

• Exercises or has the prerogative to exercise considerable control or influence over the company;

• Exercises or has the prerogative to exercise significant control or influence over the activities of an organization or trust that is not a legal person. The members or trustees of the organization or trust would also need to qualify under any of the conditions set out above.

The confirmation statement has to be prepared on the same date every year, typically close to the date of the formation of the company and does not have to necessarily have anything to do with the company’s financial year-end.

While a company will not be penalized or fined for filing their statement a little late, Companies House may threaten to levy charges of up to £5000 or threaten to wind up the company of the company in presenting the Confirmation Statement.

You will typically pay £13 for the online filing of the Confirmation Statement and £40 for paper submissions.

 

Ad hoc filing of Companies House forms

The confirmation Statement and the Annual Accounts are the two documents that need to be filed yearly.

Nonetheless, when there are critical changes to a company, there will be other documents that will have to be filed too. For instance, documents have to be filed where there is a charge on company assets, when the company borrows money and when directors resign or are appointed. Even changing the name of the company will require the filing of new documents.

As such, it is critical to be up to date with all important filings.

 

How Filing is Done

When you need to file, you can go to the Companies House website which has a list of forms to be filed online and the paper versions. You can usually fill in the PDF versions, print them and post them to Companies House.

Nonetheless, Companies House encourages companies to make their filings online given the different fees it charges for the paper and online filings. In this regard, it has launched the Protected Online Filing service to encourage online filing.

 

Protected Online Filing (PROOF Service)

Companies House provides the service to reduce fraud and to make it easier for companies to file online. Signing up to PROOF means that you have to submit some of your forms online, which works to prevent the submission of fraudulent papers.

This is alright though in some instances, particularly where there must be evidence that the person signed a form, a physical form that has to be completed and submitted in the post may be more appropriate.

 

Online filing

According to regulations filing a form online requires an Authentication Code and Security Code that can be obtained from Companies House. With these codes, one can then get into the online filing system of Companies House and then file their documents. Fee payments can be done either by credit card or if that is not preferable, one can open an account with Companies House and then use direct debut to settle any fees every month.

 

Filing of Annual accounts

If your accounts have not been audited you are allowed to log into the Companies House website and file your annual accounts.

However, it will typically be much simpler to get an accountant to file it for you. We have accounts preparation software that makes for a clean and quick process of filing once we receive the physically signed copy. Our process is error-free and will make your filings more efficient.

Vat Margin Scheme Accountants guide 

Accountants guide for Vat Margin Scheme

VAT Margin schemes are calculated by taxing the difference between the purchase price of an item and the price at which you later sell it for. Note that it is never charged on the full selling price. For instance a VAT 16% will be charged on the difference between the two prices.

Find out more

You can decide on a margin scheme if you are selling:

  • Collector’s items
  • Second hand goods
  • Antiques
  • Works of art

You cannot use a margin scheme if you are selling:

  • Precious stones
  • Investment gold
  • Precious metals

You can shift to a margin scheme at any time as long as you are keeping accurate records that are then reported on the VAT return. There is no need to register for the scheme and you will not be required to inform the tax authorities unless requested to do so.

Standard VAT and Margin Schemes

If some of the items you deal in do not qualify for a margin scheme, you will be required to charge and pay VAT for those items in the standard way.

The following cannot be included in any margin scheme calculations:

  • Accessories or parts
  • Repairs
  • Business expenses
  • Business overheads

Instead you can claim these on the standard VAT returns

How to Calculate the Margin

Using the margin scheme, you are only required to declare VAT if you sell goods for a profit. You do not have to account for VAT if you make losses.

To calculate VAT on each sale follow the following example:

Term Description
(a) Purchase price £15000
(b) Selling price £20000
(c) Gross Margin (b – a) £5000
(d) VAT payable (c x 1/6) £833.33

The vat fraction makes it possible to know the exact amount of VAT payable for any positive margins.

A standard rate of 20% VAT is 1/6. Once you have calculated the gross margin, it is then a matter of multiplying the answer by 1 and dividing it by 6.

Guidance for Stock Books

Stock Books need to be updated and should have all the pertinent information as set out in the table below. This will also include all vehicles purchased under the margin scheme for resale. If you wish you may provide more information that may be useful for your contractor accounting needs. For instance reporting vehicle:

Purchase details Sales Details
Date of procurement Date of sale
  Margin on sale (sales price less purchase price)
Purchase invoice number Sales invoice number
Stock number in numerical sequence  
Vehicle registration number  
Vehicle Description (for example, make and model)  
Buying price Sales price, or way of disposal
Name of vendor Name of purchaser
  VAT due (margin x VAT fraction – 1/6)

You have to include the margin scheme calculations in the stock book under the suitable headings. If the price you bought the goods at happens to be greater than or the same as what you sold them for, you will not have to pay any VAT. In such an instance, the stock book entry should indicate ‘Nil’.

You are not allowed to offset any losses on goods sold against VAT owed on vehicles that have been moved on for positive margins.

How to Fill the VAT Return

At the end of each tax period, you will be required to file your VAT returns. The following are some of the specific rules to be adhered to when selling or buying vehicle during the tax period under the Margin Scheme:

  1. Box 1, Insert the output tax due on all items on the scheme sold within the period.
  2. Box 6, Insert the price sold on eligible items sold less the VAT due entered in Box 1
  3. Box 7, Insert the gross total purchase price of all items bought 
  4. Boxes 8 and 9 of your VAT return are not required to be filled in.

Requirements for Record Keeping

When using the VAT margin scheme you will need to maintain the standard VAT records

You will also be required to maintain:

  • Copies of sales and purchase invoices for all items
  • A stock book that tracks all individual items that you are selling under the margin scheme

You will also be required to maintain a 6 year record of VAT. The records need to be kept until the item that is intended to be sold under the margin scheme is sold even if the item was purchased more than six years ago.

Contact GM Professional accountants if you need assistance in the vat margin scheme. We have specialists that can assist you in the  cloud based bookkeeping systems such Xero cloud. 

Paying Capital gains tax within 30days

Capital gains tax payable within 30 days

Starting April 6, 2020, UK resident s that sell residential properties inside the United Kingdom will have a grace period of 30 days to inform the HMRC of the transaction and submit any Capital Gains Tax that accrues.

Find out more

Residents that do not inform the HMRC of Capital Gains Tax within 30 days of the closing of a transaction may be liable to penalties as well as interest on any amounts the tax authorities determine to be owed. As such, it is critical for every person that is involved in a residential property sale transaction to understand the changes as they affect both UK and non-UK residents.

Capital Gains Tax

Capital Gains Tax refers to a tax on any profits made when one disposes of or sells an asset or anything whose value has increased.

It is critical to get a good understanding of Capital Gains Tax,particularly when you are required to report such gains in 30 days.

If you reside in the UK, you may be required to pay Capital Gains Tax when you dispose of or sell:

A property that is not used as the main residence
A property that is not the main residence that has been inherited
A property that belongs to you that has been let out to other people
A holiday home

But you will not be required to report Capital Gains Tax and make payment to the HMRC when:

A lawfully binding contract of sale was entered into beforeApril 6, 2020
The property is outside the United Kingdom
You qualify for full Private Residence Relief
The property was sold for a loss
The disposal or sale was made to a civil partner or a spouse
The gains (in addition to any other residential property gains that may attract tax in the same tax year) fall in the tax-freeallowance (usually known as the Annual Exempt Amount)

Newly updated guidance and online service

The HMRC intends to set up a new online service which will make it possible to pay and report any owed Capital Gains Tax.

Full guidance is expected to be given in April 2020 and will include information on accessing and using the online service.

Non-UK residents

For non-UK residents, disposals or sales of any interest in land or property in the UK still have to be reported. This applies regardless of Capital Gains liability within the thirty day periodfollowing the completion of the disposal of said asset.

It will no longer be possible to use Self-Assessment returns to defer the payment of Capital Gains Tax as all taxes due need to be submitted within the 30-day payment and reporting period.

This includes the disposal of nonresidential properties, residential properties, and indirect disposals.

Starting April 6, 2020, non-UK residents will have access to the new online reporting service that will replace the old legacy reporting system.

Capital Gains Tax refers to a tax charged on any profits realized upon the sale or disposal of an asset that has increased in value.

The tax usually applies to the gains rather than on the entire amount received from the sale.

For instance, if one bought artwork for £5,000 then proceeded to sell it for £25,000 at a later date, the profit/gain would be £20,000 (the selling price of £25,000 less the purchase price of £5,000).

Some assets do not attract a tax and if all gains in a given tax year fall under the bracket, Capital Gains Tax will not be owed on such increases in the value of a property.

Disposing of an asset

This typically includes:

Selling it
Getting compensation for it – for instance getting an insurance settlement when it is destroyed or lost
Gifting or transferring it to another person or organization
Swapping it for something else

Top 3 Tips on Paying Monthly for an Accountant

Top Tips Paying monthly for accountant

  1. Paying Monthly for an accountants can be a wise option for new startups. This could be an E-commerce business, or any small business with cashflow concerns.  The first thing you will need to examine in your business is which services  you will need.  Every individual has different circumstances and this will impact on the type of services that will be required.
Find out more
  1. The common type of services that are required for a limited company are the following:
  • Bookkeeping
  • Statutory accounts
  • Payroll services
  • Self assessment tax return
  • Confirmation statement
  • Dividend vouchers
  • CT600 (corporation tax return)
  • Abbreviated accounts

These are some of the common types of services that are required. Payroll is  an optional service based your circumstances. This will affect your monthly payment package with an accountant.  

3. Selecting an accountant with experience and exposure to your sector is vitally important, as this will ensure that you are getting the best service and maximising on your disposable income. Here at GM Professional accountants we specialise in multiple sectors and have a diverse team that handles different aspects of your business. 

Finally, to summarise, paying monthly for an accountant has many benefits and if you know the type of services that are required then this will ensure you are getting the best value for your money. This will prevent overpaying for a service that you may not need. 

Paying monthly can help you plan and project your finances so that you can do more with your cash. Here at GM Professional accountants we have tailor made solutions to suit your needs. 

We have monthly packages that you can select and ensure that you are getting a high quality service.  Our packages for Limited companies start from £70 plus vat and include the services listed above. 

 

Vlogging Youtube tax return accountants guide

Blogging and Vlogging You tube tax return accountants guide

Blogging and vlogging are relatively new professions though there bloggers and vloggers are earning an income from a variety of sources including appearance, advertising, and royalties. With so many diverse sources, you need a professional accountant which is where we come in to ensure that the tax you pay to the taxman is no more than what you should be paying.

Find out more

Subscribe to our channel for the latest updates.

Subscribe Now

Looking to become more Tax Effective?

The first critical question – are you self-employed or do you work for the man? Our experience is that most bloggers and vloggers are working home in some kind of self-employment.

Tax professionals will determine whether your self-employment income needs to be classified as trading income.

If you are in employment as a vlogger or blogger, a tax professional will make sure that your employer deducts the correct tax before you get your wages/salary.

A dedicated tax accountant is vital who will work with you in the instance that you are working several contracts in the UK and overseas.  Experts will help with optimising your taxes so that you can be compliant while paying only what is due. A HMRC investigation is not a pleasant experience but given how complex UK tax regulation can be, it is easy to get into trouble. This is where we come in to ensure our clients have the peace of mind to work in peace.

When are Vloggers and bloggers required to submit their Taxes?

Depending on whether you are a sole trader or a company, you will be expected to file returns on a set date. As a sole trader, whether you run or own the business or have employees, the authorities expect you to file the returns no later than 31st January. If you have a company selling e-commerce products the authorities expect returns to be filed no later than nine months after the accounting period.

Allowable Expenses, What can you Claim?

You are required to keep records of all expenses about sales in your eCommerce business.

  1. Ecommerce fees, postage costs, PayPal fees, and bank fees
  2. Accounting Expenses – Whether you make use of accounting software or have hired a professional account, you can claim tax filing deduction and tax preparation expenses.
  3. Damaged or Returned Items – It is critical to have beginning and ending inventory if you intend to claim deductions for returned or damaged items.
  4. Reselling
  5. Home Office Deduction – , you can claim deductions if this is done from the home office that is used exclusively for running the business.
  6. Travel Expenses – If you have to travel to deliver eCommerce goods or to source your products, the costs may be claimed as travel expenses.
  7. Taxes and shipping costs associated with the product
  8. Manufacturing costs of materials, tools, and supplies
  9. Office Equipment Expenses – You can claim expenses for things like office computers, furniture, internet services among many other services and supplies you need.

The Different Accounting Services You Require as an E-commerce Trader

Some of the services your limited company needs include:

  • Statutory company accounts
  • VAT returns per quarter
  • CT600
  • Bookkeeping
  • Abbreviated Accounts
  • Confirmation statement
  • Payroll
  • Pension compliance statement
  • Self-assessment directors’ tax return

GM Professional accountants have offices located in London, Birmingham and Essex

Accounting Tasks You Should Do Every Day

As a small business owner, it’s very likely to get overwhelmed by too many tasks at a time. When you have to tick off every item on your list in a day, accounting tasks may get neglected. But, to ensure the smooth running of your business, you should give these tasks priority. Because, even though these may not seem very important at first and delaying them till the end of the month may not seem like a big deal, they indeed are very crucial for the survival and profitability of your business. By performing these accounting tasks on daily basis, you can fix issues like cash or inventory shortages, payment and receipt of invoices, tax issues, etc. Moreover, it also becomes easier to find who was involved and why such situation occurred in the first place so that, you can save your business from such troubles in the future.

Another important thing that small business owners fail to realize is how they are losing the insight of the business, when they don’t perform the accounting tasks in timely manner. As sales receipts, payment invoices, bank statements, quotations, customer and vendor queries, etc. start to pile up on your desk, you lose focus on the bigger picture, i.e. the financial health and growth of your business.

In a blog post for Bench, Bryce Warnes writes, “When you look at your books, you want to know they reflect reality. If your bank account and your books don’t match up, you could end up spending money you don’t really have – or holding on to the money you could be investing in your business.”

Here are the 8 Accounting tasks that you should perform every day to keep your business updated:

1.      Refresh your Data

Usually, the accounting software automatically syncs the sales data, bank and card feeds into your accounting system daily. However, you have to do this manually each day if your system doesn’t have this option. This provides you with the up-to-date information about your cash flows so you can a better look at your accounts.

2.      Reconcile Cash against Receipts

If your business accepts cash, you should reconcile it daily against the receipts to avoid cash discrepancies. In this way, you can find out any cash shortages or excess cash. It will also help you to track where the cash is coming from and where it is going. So that, not only you can identify any theft but also take action in timely manner.

3.      Reconcile Bank Transactions

Most businesses reconcile bank transactions with their ledger on monthly basis. However, as a small business owner it is ideal for you to reconcile transactions each day. Most accounting software assist you by providing matches against check numbers and dates but they aren’t always accurate. That’s why human judgment is necessary. By reconciling your bank accounts daily, it becomes easy for you to identify any errors or abnormalities and resolve the issue promptly instead of waiting till the end of the month and it also helps in making your balance sheet.

4.      Deposit Cash and Checks.  Record Payments

It is always a good idea to deposit cash or checks in the bank at the end of the day. You don’t need extra cash sitting around in your office. Not only there is a greater risk of theft but you can also lose the track of the cash or checks you received. However, your business should prefer electronic receipts because there is less paperwork and it will save you some trips to the bank.

Likewise, you should prefer electronic payments over the cash or checks. See if your vendor is okay with it and talk to your bank to see your monthly or daily limit. Whether its check, cash or e-transfer, record every payment you make in a day to keep your cash flow healthy.

5.      Record Expenses & Divide them into Categories

To have a better track of your expenses, you should record them every day as they occur. You don’t want to be buried in receipts at the end of month trying to remember what each expense is and how much you paid for it. Most accounting software have option to record expense with a snap of receipt and a note to describe the expense for reference purposes. It makes your work so much easier and shorter.

You should also categorize all your expenses. For instance, it could be an administrative expense or a marketing expense. In this way, you know how much budget you should allocate to a particular head of expense.

6.      Record Inventory

To keep your system updated and have an accurate count, you must record inventory that you receive and sell every day. If you don’t do it, you won’t be able to keep up with the customers’ orders. You may lose sales because of shortage of stock because your system was not up-to-date. On the other hand, you may order extra inventory even though there was plenty of stock available in your warehouse.

7.      Bill your Clients

Timely invoicing your clients will save you from cash flow difficulties. Because, the product or service you just sold to your client is still fresh in their mind. And if there is any error in invoicing, it will be easier to communicate rather than waiting till the end of the month. Because it will only result in further delays and the chances of you getting paid on time will be lower.

8.      Pay Vendors

Paying vendors in time not only keeps your cash flows in healthy condition but it is also essential in building a good business relationship with them. As you receive invoices for payment, review them for any change of terms or errors. If your vendor allows any early payment discounts, try to avail them. Moreover, set a reminder for payment of bills you won’t be able to process that day to avoid late payment fee.

 

How to Choose the Best Umbrella Company

How to Choose the Best Umbrella Company in 2020

Contractors working with IR35 or those that may not have a definite date when they intend to spend contracting may be best suited going for a PAYE umbrella company option as opposed to a limited company. While contractor limited companies tend to be more tax-efficient, top-rated umbrella companies can make available convenient contracting solutions for businesses that are uncertain if contracting is something they intend to do for the long term.

But just what do umbrella companies provide to contracting companies and how do you determine what type of company is the best fit for your needs. Here are ten guidelines on how to select your umbrella company solutions provider:

 

  1. Determine if the company provides trading solutions that are a good fit

Umbrella or limited company – what should you use? Ensure that when you are going through the options, you opt for something that offers what your business needs. One of the best way to do this is to explain your needs and situation to a contractor accountant and the umbrella company, who will then offer advice on the best structure.

 

  1. Do Your Research on the Umbrella Company

Even if you determine that your company would be best served under an umbrella structure, it is critical to dig into the background of the company providing the solutions, including the duration for which it has been in operations and how good its credit rating is. Ask if the company will move your company’s money out of the country at any stage of the process. If it will, then that means the company may be an offshore tax solution provider rather than a true PAYE umbrella company.

 

  1. Ensure you Understand the Fees Involved

Many umbrella solution providers are not upfront on the costs and fees involved and hence it is important to get that information so that you are aware of what you will be expected to pay every month or every week. Prior to signing on to a contractor umbrella arrangement, determine if the fees charged are all-encompassing or if you will need to pay add-ons such as processing fees, filing tax forms, and expenses processing fees. If a service is offered free, ask why and how the company is able to do that.

 

  1. Make sure you Sign a Full Employment Contract

As a contractor under an umbrella company, you will be deemed an employee of the company providing the solution. As such, you will need to sign a full employment contract offered by the company so that you get to enjoy all the legal benefits and rights that all employees in the UK have a right to. Check prior to signing up that the company provides a full contract of employment.

 

  1. Determine how Claiming Expenses Works with the Company

Research and find out how claiming expenses works since there are companies that will make exaggerated claims asserting that you could save a lot of money on taxes through applying for contracting overheads without receipts. If the solutions provider advocates for such, do further investigation since if the company promotes or runs fraudulent expenses, there could be other aspects of its operations that may be non-compliant too. Note that it is possible for an umbrella company to claim a dispensation but this is not enough evidence of compliance. All it means is that the company is not obligated to submit a P11D form for every single contractor signed up with them.

 

  1. When and how you get paid

Check to ensure that the umbrella company typically pays on time after the submission of timesheets. You will also need to confirm that the contract does not have any “pay when paid” clauses. This is because such clauses are inappropriate for you as an employee. As an employee, you are qualified for statutory sick and holiday pay and minimum wage.

 

Confirm that Tax Paperwork is Included in the Solution

You may have to submit tax returns and if the solution provider does not include a dispensation, you may be required to file a P11D annually to account for business expenses. Moreover, the umbrella company provider should provide a yearly P60 and as such you should confirm that these are not charged extra but are included in the monthly or weekly fee charged.

Expense Free Exit

You are an employee of the company and hence you should never have to pay when you decide to leave. However, you should ensure that you understand the conditions and terms of employment and adhere to things such as termination clauses and notice periods just to be on the safe side. In some instances, you may find that the company has withheld some of your money for sick or holiday pay. In case there is any surplus, insist on it being paid when you get the final payment from the umbrella company.

 

Find out what kind of Support and Help is provided

It is highly likely that you will have a prosperous and long relationship with your clients. However, things can go wrong and you will need the umbrella company to provide support and help at such times. For instance, if you are accused of misconduct and umbrella company should have a human resources department that will offer advice and support and if possible offer representation at tribunal hearings.

 

Frequently Asked questions

What is the meaning of umbrella pay?

When you sign up as a contractor to an umbrella company, you become an employee of the company. Given this relationship, the agency pays the Umbrella Company which will deduct national insurance and PAYE contributions among other deductions and then pay you a salary just like any other employee.

 

What is the legal Status of Umbrella Companies?
The umbrella company is the third party and acts as a bridge between the employee and the agency. The contractor outsources some functions with regard to payrolls such as tax deductions and contributions which are then handled by the Umbrella Company. The outsourcing of such functions to umbrella companies is lawful.

 

Are Umbrella Companies Responsible for Paying Your Tax?

The agency pays your money to the umbrella company including any expenses and then the company will deduct National Insurance and tax before paying the contractor through the established PAYE system. As a contractor, you will receive your salary from the umbrella company after the necessary deductions have been made. The company will also deduct their fee before paying you.

 

Are Umbrella Companies a Rip Off?

It can be a massive rip off for agencies to employ staff under umbrella companies. They provide higher rates that will in no way compensate for the employers NI and holiday pay you will be required to pay.

 

Do Umbrella Companies Offer Holiday Pay?

It is critical to dig through the regulations and only then approach the agency with evidence of entitlement to holiday pay. You as the contractor is not employed by the agency but rather the solutions provider is. As such, the agency does not have to pay any holiday pay as they do not have a contract with you. However, the umbrella company owes you holiday pay since you are their employee.

How to hire for your finance and accounting teams

While accounting firms like GM Professional Accountants only hire experienced, pedigree experts to make up our accounting team, we know that many of our clients are not in a position to hire such levels of expertise.

As a result, we thought it would be helpful to turn the spotlight on financial skills testing.

If you are a software company hiring a computer programmer, you’d validate that he or she could code. If you are running a hospital, you’d validate that the next surgeon you hire knows his or her way around a scalpel.  Well, the same should be true for any team members you hire for your finance team.

There are a host of suppliers of online accounting tests, and a number of these provide specific skills tests to evaluate the abilities of a future hire to your finance team.  If you are hiring an entry level position, then your focus might be on basic numeracy skills.  If you are seeking a bookkeeper, you will need to ensure that your successful candidate knows a little more.  For more senior positions, you may want someone who knows Sage Line 50.

All of these skills can be tested.  Professional skills testing vendors provide assessments to validate candidate skills across a variety of roles, and accountancy skills testing is no different.

Hiring the right employee for your finance team, however, is not just about “hard” or technical accounting skills.  You’ll also need to evaluate how well the candidate will fit into your broader team.  There’s no point hiring someone who supports your financial balance sheet but damages your team balance sheet (and I apologise for the truly awful pun).  This is where psychometric testing can begin to play a part.  Again, mainstream skills testing vendors provide validated psychometric assessments that can be used to evaluate how well a potential hire will fit into your team.

The cost of a bad hire in the financial department can be huge – particularly for smaller firms.  Validating the ability of your potential hire before signing on the employment contract is an excellent way to maximise your chance of avoiding this!

Dutch Capital: Full Flexibility

Dutch Capital: Full Flexibility

The Dutch limited liability company (called a BV) is often used in international structures. In this article you will get to know about the main characteristics of the capital of a BV. The Dutch Civil Code does not contain many restrictions in the use of capital since an amendment in the year 2012. The articles related to the public limited company (called a NV) were not updated, which make that much of the following will not apply to this legal form.

How can a BV be funded with capital?

At incorporation of a BV, at least one share shall be issued. By law there are no limitations in regard the nominal value per share or capital. Stamp duties do not exist in the Netherlands.It is not mandatory to pay in share capital immediately after issuance, though from a liability perspective it is not advisableto issue shares without paying them up. In case of a bankruptcy of the BV shareholders can be requested to pay up all shares.

Above the shares’ nominal value share premium can be paid. To do this, a notarial deed is not required. An agreement between the shareholder and BV plus a shareholder’s resolution is sufficient. Note that a share premium repayment is possible though only in case that there are no profit reserves and no profits expected for the coming three years. Otherwise there is a risk of having to pay dividend withholding tax. Check this with your Dutch accountant and tax advisor. As an alternative to share premium repayment, share premium can be converted into share capital and the nominal value of shares can be decreased, allowing a tax neutral repayment. A conversion of share premium and change of nominal value require notarial deeds.

What kinds of shares can a Dutch company issue?

Priority shares, referent shares, tracking stocks and non-voting shares can all be issued by a Dutch company. Also, combinations of the characteristics of these types of shares can be created by means of letter shares.

Priority shares have decision-making powers with regard to one or more subjects mentioned in the articles of association. Priority shares usually have no profit entitlement.

Preference shares are characterized by the fact that the sharesyield a fixed return that is not linked to the operating result (but can be linked to market interest, for example). The return on these shares is paid out before the return on the normal shares.

Tracking stocks are shares that only entitle the holder to the profits made with certain activities or subsidiary of the company.

Non-voting rights do not entitle to vote, though allow shareholders to benefit from profits. It can be used as a tool for estate planning or to have investors or employees participate in the company.

The shares of a Dutch company can be denominated in any kind of foreign currency. This can be handy in case your company’s cash flows will be mainly in foreign currency. It is allowed to have an authorised capital, though no mandatory.

Can a Dutch company purchase its own shares?

A BV can purchase its own shares. Also, it can cancel such shares. Under Dutch law a capital protection scheme exists for purchase of own shares. This same scheme is also applicable to dividend distributions and share premium repayments. The purchase of shares as such is not subject to a maximum, except that at least one share with voting rights shall be with a shareholder. The management board is to perform two tests. The company may not acquire its own shares for payment if (i) the shareholders’ equity and reserves do not allow, or (ii) if the management board knows whether it should be reasonably foreseeable that the company will not be able to continue paying its due debts after the acquisition.

Its flexibility makes that the BV can be used under many different circumstances. It for sure contributes to the fact that it is the most popular legal form in the Netherlands.

Tips for Small Company Formations

Company Formation Agent Accountants for Startups

Ready to set up your Company?

It is vital  for your small business to get the company structure, share classes, shareholding, and articles of association accurate during the setting up stage at companies house.

At GM Professional Accountants, we pride ourselves in providing the most ample advice on the setup of new limited companies. We have offices based in London, Manchester and Essex.

During the setting up of a Limited Company, Company Formation is just the first step of many. You will need to consider start-up activities such as registration with HMRC business taxes, which is a service most conventional company agencies do not provide.

We provide comprehensive services that include tax and accounting compliance registration that include:

  • VAT Registration
  • Registration of Business addresses including Mail Forwarding Services
  • Registration for PAYE

What to Expect from Our Company Set Up Services for your small business

  • Online company formation in only three hours
  • Company name availability search
  • Documents by post or email
  • Registration of the company for Corporation Tax, PAYE and VAT
  • Business startup pack
  • Recommendation on the most optimal business structure
  • Accountants’ letter to help in the opening of a business bank account
  • Articles and memorandum of association

The Different Types of a Limited Company

Private Limited Company by Shares – Most Popular

This is the most popular type of limited company and is the favourite for freelancers, small businesses and contractors. The limited company typically issues profits and shares via dividends.

If you are a member of a business that is limited by shares, the obligation that is owed is limited to the number of unpaid member shares if any.

If the company becomes insolvent, the shareholder is not legally required to make any contributions to offset any debts of the business.

Company Limited by Guarantee

This business structure is mainly favoured by charities.

If the company is dissolved, it is the shareholders responsibility to contribute to the total sum of money they agreed to guarantee for it.

If a company that is limited by guarantee is liquidated or wound up, then every member will need to contribute to the amount they guaranteed. This is to offset the debts the company owes while they were a shareholder. The amounts involved are typically relatively small.

Setting up Fast

If you have ever tried to set up a company, you know that it can be a frustrating experience as there is a lot if paperwork to fill in and forms to submit.

GM Professional Accountants Do It All for You

We can complete the paperwork and submit the forms so that you are set up for trading as soon as possible.

Filling out the Forms

We will take charge of all the paperwork. This will include the compliance requirements of the company formation such as Memorandum of Articles and Articles of Association.

Some of the businesses that favour this type of company formation include freelancers, small businesses and contractors. The limited company will typically issue their profits and shares via dividends.

Shareholders of companies limited by shares are limited to the amount unpaid if any on the members’ shares. Once the member pays their shares in full, the shareholder does not have any liability for the debts of the company.

How to Find a Virtual Accountant

Small business Virtual Accountant

Virtual accounting refers to a system where a qualified accounting expert offers their accounting expertise and services to businesses and individuals virtually instead of physically working at the business premises of the client.

Find out more

Virtual accounting provides all the benefits you would get if you hired a professional that would physically work from the office. However, given that the virtual accountant is a contractor and telecommuter, the service will often be cheaper.

Virtual services make this possible as they provide greater flexibility for the accounting professional and for the client.

Advantages of Virtual Accounting Services For Your Business

With virtual accounting services, a business can get its accounting handled by a professional accountant rather than having to contract a full-time accountant. This helps companies cut costs as they can pay for services only when they need accounting work done.

It is an excellent solution particularly for small businesses that may not have the budget to engage a full-time accountant yet need a professional to do their accounting.

Virtual accounting may also prove cost-effective for big businesses that may need extra assistance even if they have their own internal accounting department. Virtual accountants can work alongside company accountants to offer their services to reduce the workload for as long as the business needs them.

It provides a unique combination for companies that may not have the funds to hire extra accounting staff but still need additional help.

A small business that cannot afford a knowledgeable and experienced accountant full time or does not have the need to hire one will benefit a lot from engaging the services of a virtual accountant.

Many small businesses run into trouble and fail within three years for a number of reasons. These include an inability to hit upon a business model that produces enough revenue, and failure to differentiate themselves from other businesses in the space. With a virtual accountant providing critical accounting services, they will be able to be in touch with the realities of the marketplace while keeping their financial goals in sight.

Instead of hiring a full time accounting professional getting a virtual accountant can be huge as the professional will provide services that include:

1. Filing and preparation of CT600 and Accounts for small business Limited Company services
2. Tax return services for Personal Self-Assessment
3. Bookkeeping
4. VAT advise and VAT returns
5. Tax return services for Self-Assessment
6. Pensions and payroll auto-enrolment services
GM Professional accountants have offices located in London, Manchester and Essex.

Accountants Guide EU VAT Goods & Services on Reverse Charge

Accountants Guide for EU VAT Purchases

The EU VAT guidelines are intended to make it possible for small businesses to trade in the EU area short of needing VAT registration in all EU nations. While the regulations tend to be complex, the alternate scenario would be more bureaucracy and work.

Find out more

At its core VAT is a consumption tax. A business registered for VAT will have to pay VAT whenever it makes a purchase and then claim it back when they make their VAT returns, which includes all the purchases made. VAT registered businesses doing businesses with each other can shift the VAT to subsequent purchasers. As such, it is the final consumer who has to pay the VAT as they cannot pass it on or reclaim it. Since the consumer eventually pays the VAT, it is called the consumption tax.

EU VAT is intended to have the same effect and hence businesses registered for VAT and doing businesses with each other within the EU can transfer VAT to subsequent purchasers up to the consumer and never have to deal with the complex regulations of each country.

There are several critical distinctions to take into account though:

Business versus Consumer

EU VAT differs depending on whether the purchaser is a business or a consumer. For the purposes of VAT, it will also be dependent on their VAT registration status. Overall, a purchaser with no VAT number means they are a consumer and one with a VAT number means they are a business. As such, any business not registered for VAT will be deemed a consumer.

Services versus Goods

If you are selling or buying only in the UK then services and goods receive the same treatment on VAT returns. Any trading done outside the United Kingdom whether it be for goods or services will mean that VAT will default to place of supply VAT rules.

It is very straightforward for goods. Goods exported from the UK to other EU countries are subject to VAT rules in the UK, while goods exported from Germany to other EU countries are subject to German VAT rules. Therefore, goods will be subject to the VAT regulations of the country of the seller.

The assumption when you are providing services such as training or consulting is that these will be delivered in person. As such, the VAT rules are inverted with the place of supply being the location of the customer. For instance, a British company consulting for a French company will have the VAT rules of France applied since the place of supply is assumed to be France. UK VAT rules will not apply as the sale is deemed out of its scope given the location of the customer.

Sales

Sales to EU consumer (not registered for VAT)

Any consumer that is not registered for VAT will have to pay the final VAT either in the EU or the UK. For all intents and purposes, sales will be treated as a sale to a United Kingdom consumer. Normal practice is to add the UK VAT of 20% to the total amount.

Box 1 (VAT payable in the period on sales)

Box 6 (Total value of sales not including VAT)

Excluded on EC Sales list

This is good if only a small part of your sales are done outside the UK. But once you start making huge volumes of these sales or a significant increase in the value of such sales, you may need to register for VAT in the given EU state and be subject to the relevant country’s VAT. Each country has different thresholds.

If your EU sales value is more than £250,000 a year, you will be required to fill an Intrastate Supplementary Declaration.

Digital Sales to EU consumer

There are different processes and rules if you are selling digital services to consumers not registered for VAT within the EU. In such an instance, VAT needs to be charged using the local rate with returns made using VAT MOSS.

Sales to EU business (registered for VAT)

You need to have the VAT number of the customer for the transaction to be deemed a business transaction. If you do not have the number, then the transaction is a consumer sale. Both the customer’s VAT and the business’s VAT number have to be indicated in the sales invoice.

Any sales made by a business in the EU also needs to be indicated on the EC Sales List. The EC is a distinct quarterly or monthly return that may not necessarily conform to the schedule of your normal VAT returns. You can get this produced automatically in various accountancy packages so that all you need to do is submit.

Goods to EU business (Registered for VAT)

If you happen to be trading goods to an EU business that is registered for VAT, then you can get zero-rated for VAT, if you do not add any VAT on top of the net value. Most accounting systems will include a specific VAT specification for this. If you are selling goods, the UK is the place of supply and hence UK VAT applies but it is zero-rated. This means that the sale has to be included in the EC sales list.

VAT zero-rated – show VAT as £0.00 and charge net value

Box 6 – Total value of sales not including VAT

Box 8 – Total value EC sales exclusive of VAT

Include in EC Sales List

Services to EU business (Registered for VAT)

If you are selling your services in the EU, the obligation of charging VAT rests with the customer. If it is a service you are selling, UK VAT will not apply since the customer location is the place of supply. Goods are zero-rated for VAT, meaning that you do not add any value to the net value of goods. You will still need to include your sales of services in the EC Sales List. Most accounting software includes a category that makes this possible.

0% VAT – show VAT as £0.00 and charge net value

Box 6 – Full value of sales not including VAT

Do not indicate in Box 8

Indicate in EC Sales list

The flat rate VAT?

If you qualify for the flat rate arrangement, then input VAT will not apply. The obligation for VAT will be determined as a percentage of the gross sales turnover over the tax period. To get your gross sales add in the 20% of VAT, which means that the owed VAT is a percentage of the total, for instance, an IT consultant will have to pay 14.5%. The percentage is intended to act as cover for VAT on acquisitions but excluding the tedium of having to go through all transactions.

If you are exporting services or goods to an EU business registered for VAT, you can avoid VAT by zero-rating the sale. But how does this influence the flat rate turnover determination?

Selling goods to the EU – Add them in the EC Sales list

Selling services to the EU – Add them in the EC Sales list but since UK VAT does not apply, exclude them from the flat rate turnover.

Buying services or goods from the EU – Sales turnover is the basis for the calculation of VAT and hence it does not matter whether EU purchases have VAT or not.

Purchases

What if you are buying services or goods from the EU? The same rules are applicable though now in reverse.

For imports greater than £260,000 of merchandise in a given year from the EU, an Intratat Supplementary Declaration will have to be submitted.

Consumer Purchases (VAT registration not provided to the supplier)

If a business does not give the seller their VAT number, then the business is deemed a consumer. Just like on the sales side the seller’s rate includes VAT and forms part of the final price.

As a consumer, the final VAT lies with you and you cannot pass it down the line. The item will be treated like it had been bought from the United Kingdom without any VAT applied.

Box 7 – Total value of acquisitions

Procurement of Goods from a Business in the EU (Registered for VAT)

You need to give your VAT registration to the seller who also needs to have a VAT number in their country for the purchase to be deemed a business transaction.

Buying of EU goods typically gets VAT charged just as if you made the purchase from the UK from a British supplier. As such, the 20% charged in sterling will apply. You can either use the published rate or find the exchange rate published by the HMRC to calculate how much is owed.

It might seem strange that the seller gets to charge 0% while you get to claim a VAT rate of 20%. But what you need to know is that the VAT rate of 20% is included in BOX 2 when you are submitting returns on EC acquisitions. Box 2 makes up the input VAT total. Therefore the VAT amount on the sales side cancels out the VAT on the purchases side, which results in a net effect of zero VAT. Overall, you should get a fair deal as the overall transaction will have a zero VAT impact just like that of the seller.

Box 2 – VAT owing on EC purchases during this period

Box 4 – VAT reclaimed on acquisitions during this period

Box 7 – Total value of acquisitions

Box 9 – Aggregate value of EC acquisitions plus VAT

Buying of Services from a Business in the EU (Registered for VAT)

This is the reverse of the sale of EU services as discussed previously. The place of supply for services from the EU is the customer location. Regardless of the country from which the service is bought from, UK VAT applies and you are responsible for filing VAT and not the seller.

The reverse charge is what is used to deal with such purchases. It does sound complex given that transactions are treated as both purchases and sales on the VAT return. It does look as if you are buying the service from yourself. The item is included in the VAT on purchases total and the purchases total as well as the VAT on sales total and the sales total. This will result in zero VAT except for a situation when not all purchases may be included.

The seller should have furnished an invoice excluding any VAT. Include the total amount paid in addition to the 20% VAT. The VAT amount includes the purchases (input) total and the sales (output) total, which will result in zero effect on VAT owed.

Box 1 – VAT owing on sales in this period

Box 4 – VAT reclaimed on acquisitions in this period

Box 6 – Aggregate value of sales without VAT

Box 7 – Total value of acquisitions

Excluded in boxes 2 or 9

A stipulation

This article is targeted at small companies with few transactions within the EU. If you run a more complicated business or are planning on large volumes or regular trade with the EU, getting specialized advice is critical.

Wrapping Up

Sale to EU (not registered for VAT) – treat as UK sale. Exclude on EC Sales list. Add 20% VAT.

Sale of merchandise to EU (registered for VAT) – zero rate VAT. Include on EC Sales list. EC sales section on the VAT return.

Sale of Services to EU (registered for VAT) – Zero rate VAT. Include on EC Sales list. Not on the EC sales section.

Buying of Goods from EU (registered for VAT) – Include on EC Acquisitions in the returns. Add 20% VAT.

Buying of Services from EU (registered for VAT) – Exclude from EC Acquisitions. Include in purchases.

GM Professional accountants have offices located in London, Manchester and Essex. 

Accountants Vat Guide for Capital Goods Property scheme

Capital Goods Scheme VAT Guide

The introduction of the Capital Goods Scheme (CGS) is intended to help adjust the input tax recoverable from the purchase of particular capital items that may not be fully employed in the production of taxable supplies.

Find out more

 

The good thing about the scheme is that it acknowledges that a business may use some assets over several years and there may be differences over the years on how the capital items are employed in the making of taxable supplies. It thus offers a mechanism through which a business may adjust the original input tax claimable over a period of up to a decade.

Assets that may be adjusted on the scheme include:

  • Computer hardware worth at least £50,000
  • Civil engineering works, fitting out works, refurbishments, buildings, and land worth at least £250,000
  • Aircraft and ships worth £50,000 or greater

VAT is not included in the valuation.

The scheme is not applicable to expenditure or assets a business acquires with the intention of resale. Nonetheless, the CGS may come into play if the business uses the asset before selling it on. On the other hand, the item will not be deemed an item of capital if it is traded before it can be used.

The acquisition of a capital item that qualifies for the scheme means that all the rules for input tax are applicable. These include:

  • Input tax has to be recovered in full for all items used fully in the production of taxable supplies
  • Input tax is not recoverable if the item is used in full to make tax-exempt supplies
  • A business may claim a percentage of the input tax according to the partial exemption regulations, if the capital item is used to produce a mixture of exempt and taxable supplies. 

Subsequently, an input tax modification needs to be made if there are any changes to the degree of taxable use during the adjustment period. If the taxable use goes higher, the business may claim more input tax and if it goes down, it may have to repay a portion of the input tax that had been claimed. 

The scheme will also take into considerations the degree to which the item that qualifies for the scheme is employed for non-business or business ends. 

The typical adjustment period is:

  • Ten consecutive intervals in the instance of part of a building, land, civil engineering or part of civil engineering works. 
  • Five consecutive intervals if the item is a boat, ship, aircraft or other vessel or computer or related computer equipment.

Nonetheless, the intervals may vary, for instance if a business owned an asset before registration then registers for VAT, the first interval will be deemed to have started on the day of first use of the capital item and will end before the beginning of the following tax year. The tax year typically ends on 31st March, 31st May or 30th April and is 12 months long. The HMRC will allocate the VAT periods as it sees fit for each business. First interval VAT is computed according to the typical partial exemption regulations. 

Subsequent intervals will typically run for a year. Where the degree to which the item may have been employed in the production of taxable supplies in a succeeding interval goes lower or higher, from the degree to which it was employed at the time of the original claim of the input tax was calculated using partial exemption regulations, the tax would have to be adjusted. For instance:

The acquisition of property results in VAT of £300,000 and 10 years is the adjustment period. According to the partial exemption recoverable ratio, 60% of the VAT will be recovered in the first year, and hence the recovered VAT is (£300,000 x 60%) = £180,000.

The business will then have to work the VAT for each subsequent interval using the initial VAT amount of £300,000. They will then use the difference between 60% which is the initial recovery rate and the subsequent recovery rate. For instance, subsequent recovery in the second year is 70% which means that the business may reclaim £300,000 ÷ (10 x 10%) which comes to £3,000. In the instance of the percentage in year two being lower than the initial 60%, the business would have had to pay more VAT rather than recover amounts paid. 

Personal Tax return for Company Directors, Accountant Guide

DO YOU NEED TO FILE SELF ASSESSMENT TAX RETURN AS A COMPANY DIRECTOR

Are Company Directors Required to File Tax Return in Self Assessment?

The subject question has had contradictory answers for many years. HMRC have maintained that tax return has to be filed by all directors quoting certain sections of the tax guidelines. However, the same guidelines have other sections which clearly exclude directors from the responsibility of filing tax returns in normal scenario. You need to dig deep into the tax laws in order to find out the correct answer. While HMRC have persisted with their stand, the position has been challenged with success in various tribunals.

Find out more

What’s the Lawful Position?

Company directors have no separate category as such. They fall under the same provisions as all other employees. If all your income has already been taxed at source and you have no other major income amounting to more than 2500, you don’t have to file tax return if you have not been issued with it. You can yourself check whether you are required to file tax return or not using the tool for self assessment updated by HMRC. The tool offers a set of simple questions to you, which when answered lead you to the logical decision.

One important point in this regard is the first question that you get from the tool. It may be reworded, but basically it asks you, “whether you were working for yourself or not”. If you were a director during the tax period, you must give “yes” as the answer irrespective of your stakes in the company. This is so because as the director, you are the boss and even though you are getting a salary, the same comes to your account only after tax is deducted at source. The subsequent questions are quite simple and easy to understand. Just answer them and you will get the decision whether you are supposed to file tax return or not.

Actions on Receipt of Notice to File Tax Return from HMRC.

If you are the company director and have no other major income that falls under taxable criteria, but have received a notice from HMRC for filing tax return, you need to act immediately. If you feel that you don’t have to file the return, you should write back to HMRC requesting them the withdraw of notice. If you fail to do this, you are liable to be penalized for not filing even if no additional tax is due on you. You should contact the GM with your UTR (Unique Tax-payer Reference) and NI number for an early resolution.

Procedure for Filing Tax Return. Get yourself registered online for self assessment. This may take about 10 working days for setting up the initial account before the return can be filed. The balance process for filing tax return is the same as for other individuals and is fairly simple. If you don’t have sufficient time to set up your online account and the deadline is closing in, you should opt to get your return filed through A tax consultant. Timely action is required in order to avoid penalties for late filing.

GM professional are specialist in personal tax returns , we can assist you in your filing and help to make the process simple. We have offices located in London, Manchester and Essex.

E-commerce Tax Advisor guide

E-commerce Specialist Tax Advisor

Taking Specialist advice when starting an E-commerce business is important. It can be challenging to select which platforms to trade on as there are a wide range of platforms. It is important to get your tax affairs in place before trading. As you have options on a few different type of structures, you can choose to trade as a limited company, sole trader, partnership and a Limited liability partnership.

Find out more

What structure should you choose?

This will be dependent on your profit, but a sole trader is a simpler model and costs less to operate. But with a limited company, you will benefit from the veil of corporation (protection against your personal assets).  A limited company may suit you if you are in employment and have this as a secondary income, you can take advantage of withdrawing dividends at a lower rate than employment income.

What challenges will you face?

If you are importing stock from overseas , then you will need to ensure that you have an EORI number to allow stock to be collected.  You may use an agent to collect and ship your stock. If you have decided to be vat registered then it is important to work out of your place of supply. As the vat treatment is dependent on the place of supply, if you are trading on platforms that ship your stock to other European countries, then you will need to assess whether these are distance sales or if you need to be Vat registered in that country.

What tax planning ideas can you take advantage of?

Its important to assess whether the expenses you are incurring are remote to the business and don’t have a dual purpose. HMRC defines this as wholly and exclusively for business purposes. Apportionments will be needed if the criteria is not fulfilled.

If you have full personal allowance then you can take advance of the small salary and divided strategy which is the most tax efficient strategy for small businesses.

Plan for Action

1) Market research

2) Hire a good accountant

3 Form a structure as explained above

4) Tax planning

5) Prepare for Vat and accounting deadlines

GM professional accountants are highly rated as we specialise in this sector and provide specialist advice on all forms of tax and vat fields. Speak to one of our tax experts and we will ensure that you are guided efficiently through the whole process. We have office is London, Manchester and Essex.

Choosing a HMRC registered accountant agent guide

HMRC REGISTERED ACCOUNTANT GUIDE

1. How to Choose Your accountant?

Selecting a good tax adviser can be difficult as well as prove to be expensive. However, if you consider the

following points, you can make an informed decision :-

(a) Experience. This is a key factor in making the right selection. An adviser with previous experience in the field can help you save a lot of money through his/her counsel. A tax consultant who can undertake bookkeeping, audit and is proficient in corporate or personal tax regulations can setup and manage your accounts in such a manner as to reduce your tax outflow. Experience in payroll services, tax investigation, VAT submission and landlord support along with the knowledge of current tax regime is an important parameter.

(b) Trust. It goes without saying that trustworthiness of your tax consultant can never be overemphasized. You can’t be sharing your personal and financial details with someone, whom you don’t trust.

(c) Qualification. If trust and experience are the 2 most important attributes, you can’t overlook the qualification of the tax adviser. A highly qualified tax consultant may seem to be expensive at the outset, but will ultimately be able to save you more money in the long run.

(d) Integrity and Transparency. You should select a tax consultant, who scores very high in integrity and informs you about all of his/her charges upfront. You should discuss the fees and costs of tax consultancy services with the adviser and an agreement must be reached. This kind of transparency is not only good for your business, but also aids in developing a healthy professional relationship. A consultant who commits to have a fixed fee structure is the best as you don’t have to spend time again and again on the same discussion.

2. HMRC approved (registered) accountants.

Tax planning and timely and accurate filing of tax returns are very critical for any business as well as individual. The rulings and procedures are often confusing. We at GM PROFESSIONAL ACCOUNTANTS provide you an end to end solution for this and are registered with HMRC as agents. With commitment to the job and knowledge of all tax related matters, we’re among the foremost Tax Advisers in London.

Find out more

3. GM PROFESSIONAL ACCOUNTANTS – The Right Choice.

Whether you’re an individual tax payer, proprietor of a trader firm or big business organizations looking for the best suited tax advice, GM PROFESSIONAL ACCOUNTANTS meets all your needs. Our bookkeeping services are arguably the best in the market and you’ll never have to worry about any wrong or inaccurate entries. With years of experience, we’ve earned more respect than profit because we put faith and integrity as our topmost goals.

Conclusion.

There are broadly 3 ways to manage your accounts and undertake tax management. First is that you do it yourself, which is perhaps the cheapest option but involves lot of hard work on your part. The second method is to take help from an acquaintance, which will have no guarantee of success. The last method is to hire a good tax consultant and although it may seem to be the most expensive method, it saves your hard- earned money. A bit of research can assist you to get the best quality tax adviser at reasonable prices.

GM Professional Accountants have offices located in London , Manchester and Essex.

Earning over 100k tax return guide

Tax implications of earning over £100k

Tax Filing for High Earners

If you earn more than 100,000 annually, you need to file your assessment tax returns with the HMRC. If you have not been sending your tax returns, you should register by the 5th of October after the tax year in which the income was realized. We can handle your tax returns and help you avoid penalties.

 

Find out more

Subscribe to our channel for the latest updates.

Subscribe Now

 

Do I Need to File a Returns if I’m Paid PAYE?

If you happen to be earning more than 100,000, you are classified as a high earner and the HMRC will be looking very closely at your money. Most high earners have more complexities in tax returns due to having more than one source of income. This calls for annual filing of self-assessment tax returns, which will ensure that all income is accounted for.

HMRC will also require that high earners file their returns since it can impact how much of your Personal Allowance will be tax-free. In HMRC language, this is what is referred to as the “adjusted net income”. The figure does not take into consideration Personal Allowance though it will comprise several types of tax relief. It boils down to a loss of 1 of tax-free Personal Allowance for each 2 over 100,000 of the adjusted net earnings. Things can get complex, which is why the HMRC requires that you file a tax return to make everything clear.

Can Submitting a Tax Return Result in Double Taxation?

You do not have to worry about double taxation as the HMRC will not tax the same income twice. However, it is easy to get it wrong if you are unfamiliar with the Self-Assessment system. There are many tax return deadlines and rules that come with Self-Assessment. You will have to register for it and you are likely to pile up penalties if you make mistakes in your filings.

Even if you somehow don’t fall into the pitfalls of Self-Assessment, you could still find that you are paying more tax than you should. Depending on the situation, you might get tax breaks on allowances that might be applied to the taxable income. Most people do not know how much they can claim for or may try to claim more too much.

What Information do the Tax Authorities Need?
HMRC will need a detailed accounting of all your income and expenses. This will include information about earning sources such as share dividends, employment, pensions and interest among others. The authorities will also expect that you declare all employment benefits. The tax authorities will also expect that you declare your allowable expenses too. It can take some getting used to and dropping the ball is more common than you may think. Contact GM If you need any advice or help.

1. Deadlines
2. Directors
3. Penalties
4. Claiming expenses
5. Common mistakes

Will you help with my Tax Returns?

Absolutely! As some of the best tax specialists in the UK, GM Professional accountants provide Self-Assessment tax return services that will be excellent if you have complex tax circumstances. We will take it off your hands and work on your total taxable earnings and then file the returns for you. Our experienced tax experts will ensure you are in compliance with the HMRC regulations and save you money while at it. Contact us and learn how we can help you with your returns.

High Income Child Benefit Charges Tax Return Guide 

Child Benefit Charges Tax Return Guide

Getting a pay rise is a good thing that is to be celebrated but it could bring with it new problems especially if your income goes above 50,000.

Find out more

 

If you have children and have been getting Child Benefit tax breaks, you may have to pay back some of the benefits. The good thing is that there are morally acceptable and legitimate ways to reduce tax liability.

Child Benefit if you are Earning More than 50,000

If you or your spouse are earning an income of 50,000 or more in a year before tax, then the HMRC will expect that you pay back a portion or in some instances all of the Child Benefit that has to be declared in the form of Extra Income Tax.

What Happens when you and your Spouse are Making Less than 50,000 Annually?

In the instance that you and your spouse each make less than 50,000 annually, you will be eligible for Child Benefit and will not have to remit or pay back anything to the HMRC.

What Happens when either you or your Spouse is Making between 50,000 and 60,000 Annually

If either you or your spouse is earning between 50,000 and 60,000 annually, you will be expected to declare and pay back part of the Child Benefit you got which will now be deemed extra Income Tax.

What Happens of either you or your spouse is making more than 60,000 per year

If one or both of you are making more than 60,000 a year, then you will need to pay back the Child Benefits as Income Tax.

What Happens When a Spouse Moves In
If you move in with a spouse that is earning more than 50,000, the tax situation will change. If you are earning more than 50,000 and your income is higher than that of your spouse, you will have to pay the tax charge. If their income is higher they will pay the tax charge.

How does it work?

Top tip
One of the biggest benefits of claiming Child Benefits is the effect on your State Pension. This works if you are currently unemployed and happen to be at home looking after your child or children. Since you may not be making payments to National Insurance, the Child Benefits will be credited to your State Pension. You can always call 0300 200 3100 and talk to a Child Benefit Office representative if you need more information on how this works.

If you are being paid on a weekly basis the full amount of Child Benefits will still be paid to you every single month. However, this is only applicable if the amount of money you are making is below the 50,000 income mark.

However, things will typically change if either you or your spouse start making more income. For instance,

if either of you starts getting more than 50,000 a month, the HMRC will expect that you pay more Income Tax. The reasoning for this is that you will need to repay part of the Child Benefit that you are no longer eligible for.

The HM Revenue and Customs authority (HMRC) requires that you file a Self-Assessment tax return. This makes it possible for the HMRC to determine how much in extra Income Tax you should pay.

Find out more

Choosing an Accountant in London Guide

How to choose an Accountant for your small business

Selecting an Accountant for Your Business

Business and tax affairs are sometimes complicated and hence the choice of an accountant is critical, whether you are an established company or a new business. The best accountants will typically have the necessary qualifications, and be members of a regulatory and professional body. Such accountants is good for your business since they have not only the practical experience but also the technical expertise in the field.

Find out more

Choosing Your Accountant

A good account is one that is suitable for your business and also for your individual needs. As such, whether you are seeking qualified accountants in London or any other location in the United Kingdom, it is absolutely critical to be very careful. Take your time rather than engage in the last-minute rush when the deadline for filing your returns is imminent. When selecting accountants, ensure that the firm has the necessary skills and experience in your industry. The best way to determine their experience is if they have clients that are of the same size and are in the same industry. Such a firm will understand the types of issues the business is likely to face. GM professional accountants work in a number of sectors and are awarded the tree best rated accountants.

Why Get a Licensed Accountant for Your Business

1. They will handle the tedious activities of account preparation so that you can have time to take care of other important activities.
2. Help you to be more efficient in structuring your tax obligations
3. They offer specialized tax saving advice
4. Help you secure funding and loans critical for the growth of the business

Where to Hire a Highly Qualified Licensed Accountant in London

You can always start with asking other people for recommendations though you will still need to ensure that your recommendations are a proper fit. A friend of a friend in your locale might have been great at helping file individual tax returns but they will not cut it if you are a fast-growing business in London.

You should also take into account the benefits of hiring an accounting firm. You will always have someone to step into the gap and take care of all your accounting needs whenever an urgent matter comes up or when your dedicated accountant is on holiday or otherwise incapacitated. A firm will also have accountants with a range of specializations and experience should you need it. However, you should find a firm that is not too large that it is impossible to speak to the same person whenever you email or call in. In an ideal situation, you want a firm that gets you a dedicated accountant that will come to learn how your business works and also build a working relationship with you. Since they will have an intimate understanding of your business they will be able to give highly relevant advice to you.

Critical Things to Take Into Account for When Choosing an Accounting Firm

1. Dedicated accountant for your business
2. Fixed fee options so that you can control costs
3. Have clients of similar size and industry
4. Local accountants that you can meet for one on one meetings

Having fixed fees is particularly critical especially if you are just starting out and need to know the exact costs of accounting services. GM Accountants are located in Ilford and central London and provide fixed price accounting services if you need such services. You get a range of pricing option for anything from basic service to one on one meetings or regular phone support depending on your needs and budget.

GM Professional accountants have offices located in London, Manchester and Essex.

Tax Return for Deceased Person Guide

Tax Return for Deceased Person Guide (on death)

Calculating and Paying Taxes after Death

The estate of the deceased will typically have to pay tax prior to any division of money to their heirs. You may not have to pay tax immediately after you get your inheritance, but tax obligations might arise down the road. Here is a handy guide on when and what to pay in taxes in the instance of death.

1. Work out the Income Tax obligations up to the day of their decease 2. Complete tax returns
3. Pay tax on any income that the estate receives
4. Determine if the estate needs to pay any Capital Gains Tax
5. Calculate the Inheritance Tax and determine who is responsible for it 6. Determine if you have to pay any inheritance tax

Work Out income Tax Obligations till the Date of Decease

It is possible that the dead person may have paid too little or even too much Income Tax.
This might mean that the estate might owe or be owed a tax refund.
To ensure that the Income Tax paid is in line with what is owed, you need to contact HM Revenue & Customs (HMRC) who will adjust the tax calculation and make it right.

If the dead person was resident in Wales, Scotland, or England, you could use the Tell Us Once service to have the calculation reviewed. The Department of Work and Pensions (DWP) and the HMRC will then contact you with details about the entitlements, benefits, and tax regarding the dead person’s estate.
If they were resident in Northern Island, you can call the Bereavement service, which provides a toll-free number (0800 085 2463) for any queries on a deceased’s estate.

Completing their tax return

If the deceased used to complete a self-assessment tax return you might have to do it too.
If you decide to use the Tell Us Once service, the HMRC will contact you in case you need to complete the self-assessment tax return.

If you cannot tell if the dead person regularly filed their tax return, consult the HMRC, which will furnish you with the information on how regularly they did so including the last time they submitted their returns. The HMRC will need you to have the National Insurance number of the deceased before they can provide you with the information you need.

Taxation on Foreign overseas Pensions Guide

Taxation on Foreign Pensions

For some professionals, working overseas is a critical component for the growth of their careers. This means that such persons may over the years accumulate significant retirement savings abroad. The big question is “How will these retirement benefits and pensions be taxed once they come back home to the UK to retire?”

The tax obligations could vary depending on how much a person accrued in retirement benefits and savings during that time and the country where they accumulated such savings, the type of retirement provisions employed and the manner of distribution of such benefits. You may have pensions in the US or Europe and its important to assess the tax and look at tax planning solutions before making that choice.

Find out more

Combined with the fact that there have been changes made to the tax obligations for persons with non-UK retirement benefits, things have become more complicated.

Determining the Nature of Payments

Before providing any advice, the first thing the adviser needs to do is to determine that nature of the client’s benefits. This article analyzes the treatment of pension earnings made while a professional is working abroad. However, it is possible that such a professional might also have other income while they are in retirement.

Different jurisdictions have different ways of encouraging people to save for retirement and not all of such schemes may have the structure or characteristics of what would be considered a pension scheme in the UK.

In some countries, the benefits may include end of service awards, savings schemes or deferment of receipt of employment income. All of these may be treated differently in the UK when they are declared as pension benefits.

The second part of this article makes the assumption that any of the retirement benefits the professional is earning come from a regime that may be regarded as a pension scheme in the UK, even if it is not registered.

Taxation of Lump Sums from a Foreign Pension Scheme

Generally, a person resident in the UK would have to pay income tax on any lump sum payments they get from their foreign pension scheme.

By and large, such lump sums will be fully subjected to income tax regulations.

While the basic premise is that the lump sum will be subjected to income tax, there is need to take into account exemptions that may reduce obligations, given that the professional accumulated the benefits when they were not living in the United Kingdom.

Reduction of Obligation for Foreign Service
You could get a partial reduction or complete exemption of income tax obligations for pension savings that a person might have accrued while working abroad in the Foreign Service.

The FA of 2017 made recent changes to relief for Foreign Service workers and the details of these changes are set out below.

Getting Relief through Invoking a Double Taxation Agreement

The United Kingdom has many Double Taxation Agreements (DTAs) with many countries and these DTAs have articles governing how pension income will be taxed. The pension article in a DTA will typically grant taxation rights to one country and exclude the other. As such, it will be critical to establish when and where the individual was resident in when the pension benefits were accumulated, and what the DTA stipulations say regarding the tax obligations on their pensions.

Home visit Accountants in London

Accountants for Home visits in London

As we are now moving towards digital technology, people can now operate tasks from home. With Video recording and digital signatures , the need to go the accountant has become less popular. There are still benefits of face to face meeting as this form of communication is far superior and better for undertaking.

Find out more

Why choose us?

GM professional provide accounting and tax services in selected areas and can also assist you with the latest technology to provide you with the same experience. We provide Self assessment tax returns services, Limited company accounting services and tax advisory services.

Communication is  the key when you have an accountants that is virtual. Here at GM, we have the systems and the software, this allows you review information an d sign the necessary forms online via software. This all can be done from your home without visiting our offices. We have robust email service that you can rely on.  

GM professional accountants provide these services around the London and Essex area, we have a specialist team that has the experience and expertise to take care of your tax affairs.

Contact us today to enquire about an appointment.

Accountants guide for Remitance basis, Overseas workday relief

Accountants guide for Remittance basis, Overseas workday relief

On the basis that the individual coming to the UK is non-domiciled, they will be able to take advantage of the ‘remittance basis’ for taxing overseas income and/or gains.

This topic can conveniently be divided into two areas:

  1. Overseas workday relief, applicable to certain employment income;
  2. The remittance basis for other (overseas) income and/or gains.

Find out more

Overseas workday relief

Where a non-domiciled individual has not been UK resident in previous tax years (or, if UK resident, has been resident for no more than the previous two tax years), general earnings arising in the following tax year which are not in respect of UK duties of the employment, are taxed on the remittance basis only.

Remittance basis generally

For non-domiciled individuals who are not ‘long-term’ residents of the UK (that is, they have been resident for less than seven out of the previous nine tax years), the remittance basis of taxation is available with respect to their other overseas income and their overseas gains, and this can be enjoyed without having to pay the ‘remittance basis charge’ (a sum of £30,000 upwards per tax year).

Where the remittance basis applies, such foreign income and gains are charged for a tax year only on so much of such income or gains as are remitted to the UK in that tax year. The meaning of ‘remitted to the UK’ was significantly tightened up in 2008.

In most cases, the individual has to make a claim for the remittance basis to apply.

There are certain exemptions or reliefs available, in particular ‘Business investment relief’ which was introduced from 2012. This permits monies to be brought into the UK for the purposes of acquiring qualifying business assets, without such amounts counting as ‘remittances’ for tax purposes.

GM Professional Accountants have office in London, Manchester and Essex.

Vat registration number for Amazon FBA

Vat registration number Amazon FBA Business

Starting an Amazon FBA business can be challenging. It’s import to assess whether you will need to register for vat. This is an important stage and the correct decisions will need to be made. The best vat scheme will need to be selected and you will need to keep records in MTD format and software.

Find out more

This will depend on your location. UK companies have a threshold of 85,000 on a cumulative basis. This threshold does not apply to businesses outside the UK. You may need to register for vat on the onset.

There are few schemes for vat. This will depend on your purchases. You have the standard rate vat scheme and the flat rate vat. With the flat rate vat scheme, there is the limited cost trader rule which will negate the benefit of the vat scheme

Amazon business owners will need to also differentiate between customers, Businesses to business and business to consumers . As the vat treatment can be different if you are selling outside the Uk.

An EC sales will also need to be done with the vat returns.

GM professional accountants specialise in the E-commerce sector. This ensures you are compliant and up to date with latest changes. Our experts help you select the schemes that benefit your business. We help you understand you obligations and fulfil them in a timely manner.

GM Professional accountants have offices located in London, Manchester and Essex.

Applying CGT in Divorce Cases, Reports for the Court

Applying capital gains tax (CGT )in Divorce Cases

More often than not, a divorce will result in assets being transferred from one spouse to another. Read on for a better understanding of the application of CGT, including how and when it is used. You may need to produce a capital gains tax report for the court.

When a marriage breaks down, no one ever thinks of the tax obligations that may arise from subsequent happenings. However, it is important to do some tax planning as this can have some significant benefits for both parties.

Find out more

Transfers between Spouses

Taxation of Chargeable Gains Act 1992 Section 58 has the provision asserting that if civil partners or spouses that happen to be living together transfer assets in a tax year, the transfers are deemed to be made on a no loss/no gain basis.

The implication is that the person who receives the asset will be treated like they paid an amount equivalent to the total of the original cost of acquisition.

Transfers between Spouses in the Year of Separation
The no loss/no gain treatment is also applicable to transfers between civil partners and spouses for the remainder of the year that the separation is reported, even if the civil partners or spouses may not be living together when the transfers are made.

If dissolution of a civil partnership or a divorce happens in the same year in which the separation was reported, the no loss/no gain treatment is applicable to all asset transfers made after the dissolution or divorce as long as they happen before the end of the tax year.

The ICTA 1988/S 282 defines living together. A woman is deemed to be living together with the husband unless she can show that (a) she separated in circumstances that are likely to make the separation permanent (b) she has a formal deed of separation (c) she separated under a court order.

According to the ruling in Holmes v Mitchell STC 25, a couple may be deemed separated even if they still share a residence. For instance, when financial considerations make it impossible for one civil partner or spouse to move out or when the parties desire to minimize the initial harm that could be inflicted on the children.

Conclusion
In conclusion, capital gains tax on transfers between civil partners or spouses is not payable in a year in which they still live together. This will still be applicable for the entire year in which they got separated. You may have to pay capital gains tax if the asset transfer is done in the year following the separation. The assumption made in such an instance is that the transfer is made at market value. The reasoning for this is that the spouses are still connected to each other until the provisional decree of divorce is proclaimed.

In an ideal situation, the asset transfers if they may attract chargeable tax should be conducted before the end of the tax year of separation. In an instance in which asset transfers could result in tax liability on capital gains, a transfer made in different years may be the best option. The reason for this is that you can reduce the

total payable amount since you get to enjoy two annual exemptions. If the transferor civil partner’s or spouses capital gains tax are likely to be lower in a given tax year as compared to another, then delaying, accelerating or asset transfers could be one way of improving their capital gains tax position.

GM Professional accountants have offices locates in Manchester, London, and Essex.

Accountants Guide for Courier Drivers

COURIERS’ TAX RETURNS

Online shopping is one of the most developing segments in business. The development of online shopping has led to the creation of more jobs. One of the tasks that online shopping has created is courier freelancing.

How To Become A Freelance Courier

The first thing you need for you to work as a freelance courier is a van. You can use your van, or if you don’t have, you can hire. A freelancer courier can take jobs from courier companies like UPS or FedEx. Also, if you are capable, you can begin your own courier company.

Pros and Cons of The Two Courier Options.

– If you have to work under any other courier service as a freelancer, you will have no worry about how you will source for clients. However, your agreement with these companies will always tie you down.

– If you begin your own courier business, you will have the freedom to choose the clients you can work for, and you will put in a lot of efforts. Your inputs either hard work or finances would determine how many clients you will get.

How to Advertise Your Courier Services

Are you planning to begin your own courier services company? There are a few tips that may be helpful you can use to get clients. Some of the techniques are:

– Develop a website. Developing a professional website will help in boosting the credibility of your company. You can list your services on the website and also the prices for your services. Also, the site is a good point where you can communicate with your clients.

– Social networking. There are a lot of social media platforms with steady users which you can use to grow your business. You can run adverts on these platforms where you can target individuals looking for freelance courier services. You can use Facebook, LinkedIn, Instagram or Twitter to create your market base.

– Business cards. A freelancer can design and printout business cards. The cards should show your services, names and also contact details. You can then give the cards to your friends, family members, and even potential clients.

– Create adverts. Not everyone uses social media. You can use local advertising as your medium of communication. Adverts are cheaper and quickly meet your target audience.

How To Become Better in Your Courier Services

If you begin your own courier company, the better you are at your job, the chances of getting more clients are higher. Some of the skills that some of the best couriers have are:

– Stick to deadlines. Once customers purchase or request for goods, they usually need them in a short time. Due to the loads of packages you have to deliver, it would be wise to create a plan which will allow you to

stick to their schedules.

– Have adequate knowledge of the streets. In case your navigation system breaks down during your deliveries, you need to have sufficient experience of every street. It will help you to keep time even without a nav system.

– Stay fit. Since you will be spending a lot of time sitting in your van, you need to be healthy. Also, you will need to be fit for you to load and off-load your van.

– Be a good driver. This is one of the essential requirements that you need. You should have a valid driving license and also stick to the Highway Rules.

Accounting as a Courier.

There are a lot of benefits that you will enjoy in being a freelance courier. However, as a freelancer, there is one major challenge which is accounting. If you are employed, your tax is taken care of in the PAYE form. As a freelancer, You have to prepare your financial records and pay for the Self-assessment tax return. It’s done annually, and it may be challenging for you. It can distract you from your busy delivery schedules.

Getting Accountancy and Tax Advice.

You can contact GM :Professional accountants to prepare your the financial records at the end of the year. We specialise in this sector and provide bookkeeping, tax return services and company accounting services.  For the courier agency to operate smoothly, we will provide general tax advice on accounting and tax returns. It will be perfect if you keep your records up to date each month as this will allow you to make an informed decision.

Accountants Guide for Overseas Contractors

Accountants Guide for overseas contractors

One of the benefits of being a contractor or freelancer is that you can work from wherever and for whomever you want.

Nonetheless, working from abroad is not all sandals and margaritas: There are tax and legal implications if you are working for a foreign company or if you are working in a foreign country.

Find out more

Contracting Abroad

If you intend to be away for a few months or even just a few weeks and intend to work while abroad, then you typically will not have to deal with issues with regard to tax.

But if you intend to move for a period of three years or more or even permanently, you are going to be treated as a non-resident person right from the day you leave the UK. Once you are no longer deemed a resident of the UK, you will not have any tax obligations.

Things get more complex if you intend to visit the UK frequently while living abroad. If you have such intentions, the HMRC will deem you a resident expected to pay tax unless it is determined that your visits to the UK are less than:

1) 183 days of a tax year
2) An average of 91 days every tax year over a four year period

In addition to this, the HMRC will take into consideration several other factors such as:

1) Your ties to family
2) Memberships to UK societies and clubs which can prove social ties
3) If you still maintain a house in the UK
4) Whether you still retain work ties such as directorship of your limited company

It is important to note that the 91-day residency test can also be determined through qualitative analysis. These may include aspects such as whether or not you purchased properties in the foreign country you currently live in. If this is deemed insufficient as proof of change of residency, you will be treated as a UK resident for at least three years before your circumstances are reviewed again.

The implication of this is that you may have to pay taxes on capital gains and income on an adjusted basis if you spent a significant number of days in the UK. This is what is referred to as split year treatment.

This can be a particularly significant thing to note, especially if you also have to pay tax in your current country of residence. Given that each country has its own laws on tax and residency, it is advisable to always find a professional tax accountant to give you advice on how tax in your country works.

You also need to remember that you have to apply for the relevant visas if you are residing in a non-EU country. This is usually so if you are on a tourist visa and you intend to stay for more than the typical 90 days allowed.

Residency laws tend to be very complex and hence if you are not sure if you are classified as a UK resident or not, you need to speak with a specialist who knows these things. “Am I a UK Tax Resident” is an

excellent piece that should get you up to speed on how tax and residency in the UK works.

Finally, you will have to take into account your expenses and how the implications of these on your options. If you are going abroad as part of the fulfilment of a contract, then you can claim from your limited company expenses such as hotels, flights among other things.

Nonetheless, if you are just doing a little work while on holiday, you cannot claim any expenses for that.

Accountants Guide for Expats

Accountants Guide for Expats

If you work or live abroad or intend to do so, you need to know that changing your residence from the UK to abroad will impact your tax status.

Find out more

Working and Living Overseas

The tax status of expatriates is one very complex issue. If you are not meticulous with your tax planning,
you may find yourself subjected to punitive tax obligations. In addition to having changed your UK tax
status, you will also need to take into account the tax laws of the country where you now live.

Statutory Residence Test

First, you will have to take into account the new expatriate benchmarks as set out in the New Statutory
Residence Test, as set out by the tax authorities.

A good understanding of how it works will be helpful to help you determine:

1) How any income from your investments in the UK will be treated
2) The Capital Gains and Inheritance Tax rules
3) The consequences of selling any of your assets in the UK (such as stocks)

As such, you need to have an expert review your contracts to determine what aspects of your income are
impacted by the change in tax status.

Expatriate Tax Advice if you are leaving the UK

Once your tax status is established, the professionals will assist you with planning your financial affairs so
that you can minimize your tax obligations. Areas that would need to be taken into consideration include:

1) Advise on how tax would be treated in your new overseas resident country and in the UK.
2) Inheritance Tax planning
3) Taking into account efficient asset disposal
4) How to deal with investments

Tax Returns as a Non Resident

In addition to tax planning, you also need to know your filing obligations for both your new residence
country and the UK. We can help you stay compliant and avoid any liability by making sure that:
1) All tax returns and obligations are documented and,
2) Filled out accurately and
3) Filed in a timely manner so that you do not have to pay any late filing fees

Tax Planning when you come back to the UK

This will be the complement to tax planning when you are leaving the UK. You need to take care of similar
issues to make sure you avoid any pitfalls and lessen the amount of tax you have to pay.

Expat Tax Extenuation Professionals

We have specialist tax professionals who provide advice to expatriates on how to perform efficient tax
planning and on tax mitigation.

GM Professional Accountants have offices located in London, Essex and Manchester.

Deliveroo driver Tax return accountants guide

Deliveroo driver Tax return Accountants Guide

Will Shu the founder and also the CEO of the Deliveroo received motivation after his amazing journey to a great city that was endowed with rich restaurants but they only had one shortcoming! most of these rich restaurants could not really do the food delivery. Will Shu decided to initiate the best local restaurants that could deliver foods to the client s doors.

Deliveroo has since seen a greater growth that’s is approximated at 650% following its convenient and the most reliable food deliveries! Customers can really get their full supply by just making a call. The restaurants partnering with this amazing company has also seen the growth of over 30% and has really done great in creating job opportunities for the people.

Independent self-employed drivers sometimes find it difficult handling issues of the tax. Some drivers are really not educated on the bookkeeping and also the taxes and sometimes they pay the excess or even subjected to some penalties.

All these issues can be really sorted out when a proper accountant who understands s the tax mechanism is employed. You can always contact us for assistance.

 

Find out more

Four major bookkeeping requirements for efficient Tax management;

1. The deliveroo driver must have the register with HMRC using there website as self-employed

2. The second step is to ensure that business transactions documents such as the receipts and the expenses are just kept for the year end.

3. The Deliveroo driver should also ensure that they do the self-assessmen tax return which consists of the income and expenses before 31st January of every year.

4. Other liabilities such as the pending tax or the national insurance must be paid before the 31st January every year.

Allowable expenses

Drivers of the Deliveroo are entitled to some allowable expenses which have really done a lot in reducing their tax bill. Taxes are always paid on the amount that is left after subtracting the allowable business expenses. They include;

Mileage claim

Mileage claim is always entitled to the drivers who own a car. When the claim is made, the eligibility to claim for the cost of the car, servicing and also the insurance is canceled. The first 10,000 miles  attracts the rates of 45p and then after which it attracts 25p thereafter.

Car purchase

Purchasing a new vehicle will actually make you liable to claim all the cost in a few years with the following rates;
up to 130g/KM will entitle you to an 18% capital allowances while those that exceed 131/KM will entitle you to an 8% capital allowance.

Car Lease payments

There is also an allowable deduction for the car lease at whilst working as a Deliveroo driver. You can always deduct the amount that is obtained from the cost of the lease, insurance and also the repair cost every month!

Service charges and commission at Deliveroo

Deliveroo drivers can claim deductions for the following services; Tolls and parking charges, insurance, the bank charges, car cleaning, accountants fees vehicle and public liability fee.

Finding a good accountant for your business

Finding the best accounting firm has always been an easy task following the large variety of accounting firms that really offer the same service. They offer the accounting services to the Deliveroo drivers who find the accounting work tedious. GM professional accountants has played an important role in providing deliveroo drivers with mobile apps that enables them recording of the daily transactions.

Among the key roles played by the firms are;

1. Create a Self assessment record with HMRC
2. Are responsible for the bookkeeping and accounts to judge the real profit of the driver.
3. Provision of the mobile Apps that will enable the drivers to do record keep
4. Keep track of all the business expenses and also the income.
5. Keep a record of all the vehicle details such as the mileage.
6. They also provide the preparation of accounts for filling to HMRC

Other roles are the bits of advice on the importance of the record keeping and also they do help in issues that prevent a tax investigations.

For the individual accountant, it can go up to 250 GBP while companies may cost more than 600 GBP. It’s always advisable to check the ratings of any accountant before hiring.

Making Tax digital Accountants guide

What is making tax digital?

Making tax digital (MTD) is a huge project by HMRC and it applies to businesses, sole traders and landlords. The aim of this project is to maintain accounting records using computer based software. This data will inform HMRC about the income and expenses every quarter.

Find out more

 

When this will affect your business?

There has been a revised plan in the finance bill. Under the old plans, landlords and businesses that have sales over £10,000 would have needed to submit quarterly returns. The businesses that are vat registered also would be required to submit from April 2018 and businesses that are not vat registered would have to submit by April 2019.

The treasury has amended the plan and the requirements since then, as the previous timetable was not practical and they considered the opinions of professionals in the accounting field.

Under the new plans the following will apply:

  • Only Vat registered businesses will need to keep digital records.
  • This will apply from April 2019
  • Non vat registered businesses will not need digital records until  2020
  • HMRC have opened the pilot scheme which will enable businesses to test and use the system.

Which software will you choose?

If you are still using spreadsheets, then now is the time to stop and choose a software package. There are a number of cloud based software packages. Majority of these bookkeeping packages will use bank feeds. This basically means the bank transactions will automatically feed in to the software which ensures the accuracy of the data and also saves time.

How to store your records?

You may choose cloud based storage or you can choose from the latest camera and scanner application that directly feed into your bookkeeping software. It is important that you have a system in place that is secure and is backed up. There are benefits of using digital technology but also drawbacks such as losing the data if this has not been backed up.

Why Choose GM Professional Accountants as your MTD Accountant?

GM Professional accountants are experienced in making tax digital and we have our own dedicated software that will meet the requirements of your business. We have applications that can be used from your phone or desktop to keep Digital records which saves time and is efficient. We understand that moving to a cloud based software may seem difficult. This can overcome by the right guidance and management. GM professional accountants can assist you in preparing for MTD and can help you at every stage. From knowing when your reporting period is starting, what software packages to invest in and how to keep your records secure. These are important stages as you can over spend on features that you may not need. These can be packaged under different price plans, you will need to know whether you are choosing the correct one for your business.

Call GM professional Accountants today and we can assist you in making tax digital a simple process.

Call us on 0208 396 6128 to speak to a tax expert.

How to choose the best online accountant

How to Choose an Online Accountant

When choosing an online accountant, it’s important to get it done right. We will explain the process on what to look for. It’s important to choose a specialist and an accounting firm that is experienced.

What to look for in a good online accountant?

Looking for a good online accountant should not be very expensive, but you will need to take a few points into consideration.

 

Find out more

 

Experience

When choosing the best online accountant, you should look at the experience of the accounting firm. You will need to look to see if they are registered agents with HMRC. This is important as an experienced firm will have controls and procedures set by the accounting bodies. Furthermore, it’s important to know whether they specialise in your field. You may be self-employed or a limited company. This ensures that you are gaining the maximum benefit of that service by an expert. Experienced will have CPD, which ensures they are up to date with the latest budgets and tax changes.

Trust

This is an important factor, as you will provide them with sensitive information such as your passport and bank details. You should enquire to see if they are registered with the information commissioner’s office. This will confirm if they have controls in place to comply with the standards. It is important that you are comfortable and can trust your accountant.

 

Qualifications

When choosing a good online accountant, it is important that you conduct enough research, looking at the first website and hoping for the best may not be a good idea. You will need put some time and effort to know the firm and to see the qualification of the person you are dealing with. The other important factor is to see experiences of others. This can be done by checking their reviews and understanding the level of service that is being provided.

 

Transparency and Integrity

When choosing an online accountant, it is important that the accounting firm is straight forward and honest on the fee structure. This should be discussed at the beginning of the engagement and engagement should be signed by both parties in order to avoid a dispute later.

Why I Should Hire GM PROFESSIONAL ACCOUNTANTS as my online accountant.

GM professional accountants are bound by the professional ethics as discussed in this article. Our 5-star reviews have resulted in us being the three best rated accountants in our area. This gives our clients confidence in our services and in our ability. We are a respectable and honest company which is built on trust and integrity to provide the best possible professional service.

We specialise in accounting and tax, which ensures both fields are covered. Our current client base ranges from freelancers, contractors, landlords, small limited companies and many more. General tax support is included in all our packages; this is our speciality and an important factor throughout our relationship. This provides confidence that you are not overcharged for a service. The fees range from £25-£70 plus vat per month, which depends on the type of structure and services you require.

 

Call us today for a free consultation on 0208 396 6128

Vat accountants for small business

Vat specialist advice for small businesses

Vat can be be complex for small businesses. As this is a broad field and specialist advice is need to make an informed decision.What to claim as input vat and what type of scheme you will select are some of the common questions.

VAT compliance

We ensure that you have enough information to Make an informed decision and understand the complexities.

VAT is a complex tax and HMRC threaten penalties for any errors; let us guide you through the maze of regulations. We work with you to ensure that you understand VAT and its impact on your transactions, assisting with:

  • VAT registrations
  • Consultancy advice
  • International vat rules
  • Completing VAT returns on your behalf.

International VAT

International vat is an area where most small businesses need advice. Cross border transanctions between the EU and outside the EU have different treatments. With Amazon FBA small businesses now expanding , the place of supply is an important factor on the vat treatment. The place of supply is different for Goods and services and also treatment to businesses and consumers. There is also distance selling rules which can impact you significantly if you cross the threshold. The types of scheme such as the flat rate  scheme have been impacted by the limit cost trader rule. This has now made businesses use the 16.5% with 1% percent discount in the first year.

Zero rated, Standard rates and exempt

It can be difficult to identify the vat treatment for products and services. This can also impact whether you can claim the input vat or not. GM professional Accountants are vat specialists and provide a wide range of services on vat. We provide comprehensive information, this ensures that you are comfortable and In control of your business.

Call GM professional Accountants today on 0208 396 6128

Our offices are located in London, Essex and Manchester.

Tax return guide for foreign income

Tax return guide for foreign income

Income tax can be payable on foreign income, the common types of income that are taxable in the UK are foreign interest on savings, employed or trading income from abroad, rental income on properties located outside the UK and income from overseas pensions.

Find out more

Foreign income is considered to be anything from outside Scotland,England  Northern Ireland and Wales.

accountants for foreigners

How to calculate what you need to pay

The first thing that you need to identify is whether you are resident in the UK. If you are not considered resident in the UK then that means you do not have to pay tax on foreign income. There is also double taxation treaties between the UK and some countries , this ensures that you are not taxed again for the same income. If you have already paid income tax or capital gains tax on overseas employment inc0me or gains, then you may apply for foreign tax credit relief if there is a double taxation treaty. you will still pay up to the UK limit and will not receive a refund if you have overpaid.

Filing your Tax return on foreign income

You will need to register for self assessment and there are deadlines to register depending on the tax year. Example, if you had income to report on the 01/07/2017 , then you will need to file the 2017/2018 self assessment tax return and the deadline for this is 31/01/2019 (electronic returns). You will need to notify HMRC latest by the 05/10/2018 in this example. once you have registered , you will recieve  a Unique tax reference number (this can take up to 4weeks). This number is important, without this number you will not be able to file your tax return. GM professional accountants specialise in foreign income tax returns and have tailer made tax planning solutions. This ensure you are in safe hands and are getting expert advice.

GM Professional accountants have offices located in London, Manchester and Essex.

Top tips on Filing your Self assessment Tax return 2018-2019

Key points on how to file your self assessment tax return 2018-2019

Deadline to register

Its important to understand that you will need to notify HMRC before the 5th October if you need to file your tax return 2018-19, Otherwise you may incur a penalty. You can register online or by paper, the online method is usually quicker, the UTR number can take up 4 weeks to arrive in the post. You cannot file your tax return if you have not received your Unique tax reference number.

accountants for limited companies

Information needed to file your tax return

The information you will need will depend on your source of income.

Simple income Tax Tax returns

  • P60 or P45
  • P11d
  • Pension income

Property income Tax return

  • Rental income Statements
  • Mortgage interest certificate
  • Service charges
  • Repairs and maintenance costs
  • Accountancy costs

Self employed tax returns

  • Sales invoices
  • Purchases
  • Expenses
  • Bank statements

Capital Gains property Tax returns

  • Sales completion statements
  • Purchase completion statements

The information listed above is what you will need to complete the basic tax return and you may need other information depending on your circumstances.

Other information needed

  • Interest income
  • Dividend income

The deadline to file the electronic tax return 2018-2019 is the 31st Jan 2020. GM professional Accountants can help you in the preparation and filing of your tax return. It is important to complete a tax return if you have been issued with one. If you ignore the filing deadline and do not file by the deadline. you can be looking at fines that can run into the hundreds.

You must submit your tax return by the 30/12/2019 if you would like the tax to be collected from your wages. The UTR number can take up to three weeks to afrrive if you have lost your number. Ensure you order this in time  order file your tax return by the deadline. GM professional Accountants are based in London and Ilford.

 

 

 

What is a Director’s Loan Account

Director’s Loan Account.

 

If you run a limited company, there are a few financial things you need to understand to help you run your company better. One of these things is the director’s loan.

 

According to Her Majesty’s Revenue and Customs, a director’s loan is any money which you take from your company which is not;

 

  • Your wage, expense refunds and dividends.
  • Funds you have previously loaned or paid for your company.

accountants for limited companies

 

Even though the money that is in your company’s bank account is not technically yours, you can have access to it through the director’s loan account.

 

Any time you withdraw money for any other reason, that money ought to be recorded in your DLA. Depending on your activities, when your company’s financial year comes to an end, the company will be owing you money or you owing the company money. This should be noted as a liability or an asset in your company’s annual accounts balance sheet.

 

  1. The contents of a DLA.

 

These are the things included in a DLA;

 

  • All cash withdrawals that you made from the company as its director.
  • Individual expenses which you paid using the company’s fund or a credit card.

 

Business expenses are the type of expenses that might be incurred exclusively, entirely and necessarily during the executions of your employment duties. Anything else that does not fall under this is therefore a personal expense. Your director’s loan account should include evidence of all transactions which involve your finances, together with the company’s as well, to make sure that it will stand up to HMRC’s scrutinies.

 

Running your own limited company is to some extent risky, and that is the reason why HMRC will keep your director’s loan account under review through the yearly tax returns of the company to make sure that rules and regulations are followed to the latter.

 

  1. Who is eligible to apply for a director’s loan?

 

Just as the title suggests, in order to be eligible to take a director’s loan from your company, you first need to be a director. There are several reasons why you would take a loan from your company, the important thing to know is that that loan has not been subjected to the company’s or your personal tax. If you pay the whole loan back 9 months to the year-end of the company, you will not owe any tax. However, if your DLA gets overdrawn at your company’s year-end, then you will be forced to pay tax.

For example, if you get a loan in March 2017, and the year-end for your company is April 2017, then you will have to pay back the loan by February 2019. It is important to know that any overdue director’s loan account will have to pay the tax at 32.5%.

 

  1. Is it important to record the director’s loans?

 

When you started your limited company, you established it as a legal entity, so it is essential to remember that your relationship with your company is legally separated. This means that your company has its own statutory duties and responsibilities, that is the reason why any amount withdrawn ought to be recorded.

 

  1. What if you owe your company money?

 

The moment you owe your company 10,000 or more, that loan is automatically classified under benefit in kind. Furthermore you will be forced to record it on aP11D since it will be liable to both your company’s and your personal tax. Other than that, you will also pay a Class 1A National Insurance at a 13.8% rate on the whole amount.

 

  1. A written off loan.

 

The moment that your company decides to write off your loan you will need to consider taxes and accounting, it is advisable to consult an accountant so that he can help you decide on the next course of action.

 

  1. Monitoring of the director’s loans by the HMRC.

 

It is part of HMRC’s job to monitor all the DLA’s which are frequently overdrawn. Sometimes it is possible for them to come to an agreement that the money should stop being a loan and make it your salary instead, therefore it is strongly advised that you regularly monitor your director’s withdrawals to make sure you don’t go beyond the 10,000 thresholds.

 

A Tax Advisers Guide for the Let Property Campaign

Let Property Campaign Expert Accountants

The residential property landlords now have the responsibility to comply with the new income declaration scheme. The payment of tax is an obligation that every citizen should meet in the United Kingdom. This noble cause prompts Her Majesty’s Revenue and Customs believe in the need for landlords should get the opportunity rightly disclose their taxes. Let Property campaign fills the gap by providing the necessary knowledge to people with income from property.

Let property campaign accountants

Find out more

Why it is important to make the disclosure

The main advantage you get due to voluntary disclosure is the favourable terms in the payment of the tax you owe. Notably, tax evasion results in penalties. Therefore, it is important to undertake a voluntary and full disclosure of the unpaid tax to benefit from the low penalty rates that are associated with it. Meanwhile, if you decide to wait for the HMRC to discover that you are evading tax, you will be dealing with higher penalties. The penalties can be 100% of what you owe. When you add the higher penalties to the likely cost of  investigation , voluntary disclosure is far much cost effective to the landlord.

Why it is important to use a professional Tax Adviser

Landlords are susceptible to several tax errors which may be deliberate or due to misunderstanding. Our Tax advisers will help you to know whether the Let Property Campaign applies to you or not. There is an instance when you can be a landlord and you fail to realise. A simple misunderstanding of the rules that occur when you inherit a property or renting out your flat to cover mortgage payment is part of what makes one liable to unpaid tax. In such cases, a professional adviser will be helpful in attaining updated tax affairs.

Additionally, the Let Property Campaign has a wider scope. It varies significantly with the previous disclosure systems. This means you may not have a complete grip of all that is required of you in this regard. The professional adviser becomes handy in guiding you through the steps you need to follow based on your circumstance.

How far back do I need to go with my declaration?

The declaration goes as far as when you started receiving the letting income. It is important to keep a record, especially of the expenses as if you do not have the proof of these, then you will not be allowed a deduction. The Tax adviser will assist you between capital and revenue expenditure.

What happens if I cannot pay the tax?

If you cannot pay what you owe, you must contact HMRC before the submission of your disclosure. The HMRC will make decisions depending on your current financial position to advice accordingly. The Let Property Campaign is something to consider because payment of tax is an obligation to be met by every citizen.

GM Professional accountant are Experts in the Let property campaign procedure and the cost of our services is affordable. Our accountants are experienced in this field and ensure that you maximise on any allowances.

Our Offies are located in London, Manchester and Essex.

How to handle a personal tax investigation 

Tax investigation Specilaists 

How to handle a personal tax investigation
How to handle a personal tax investigation

A considerable number of businesses will confront a regular tax investigation at any time of normal operation. More serious duty review is likely if HMRC doubts that your tax returns are incorrect.  A tax investigation or inquiry is certain to be a very difficult and stressful situation which can be quite costly in the long-term to resolve if it takes a long time to settle. Also, if you find that you are overly distracted by an HMRC tax investigation, it is likely to cause difficulties in being able to properly concentrate on your day-to-day activities of running the business. Be free to take an expert advice where you can`t settle tax audit by your own just after it starts.

Likelihood of a tax investigation

You ought to expect regular tax investigation in case you are enlisted for VAT or other have workers paid via PAYE. The duty audits will inspect your records and frameworks, concentrating on commonly mistaken areas.   Routine tax reviews are considerably less likely with regards to income duty or organization tax. Rather, the attention is emphasized on tax audits where HMRC has the motivation to trust you are either committing mistakes or intentionally concealing income.   Normally, tax reviews can be done after a period of five years, while just a couple of per cent of wage duty and company tax return are investigated every year.  Some of the most noticed reasons for the HMRC to start an investigation include records that differ vastly from similar business in the same industry, using round numbers on all entries and not the exact figures, unexplained or unusual fluctuations in the declared amounts, low-quality record keeping, a tip-off from a tenant or disgruntled employee, and certain high risk areas of business, such as construction or jobs that are likely to involve cash payments. Also, about three per cent of investigations is started on a purely random basis.

Tax investigation notification

The investigation process starts with the arrival of a letter from HMRC, indicating to you that an inquiry has been initiated into your financial affairs. Usually, you will be asked to clarify certain things and submit a few business records and therefore, you will need to take the right action to make certain this situation is resolved as effectively as possible.

Find out more

 

Dealing with a tax audit

On first getting the notification of being investigated you need to avoid getting into a panic and stay calm. Even in those situations where you have made errors on your tax return, you might still find that it is possible to rectify the issues by making any payments due as soon as possible. Unless a tax return features many intentional errors of a significant size, there are very few instances where a case ends with a custodial sentence.  You ought to seek guidance soonest possibly after notice of a tax investigation.  You might need to request that your bookkeeper checks your records and frameworks. The tax review will be snappier, easier and not most likely to prompt punishments if you can provide precise, updated data when the reviewer visits. It is best for you to get in touch with a tax audit specialist, who can guide you about the proper course of action to be followed from here. Quite often, expert help may lead you to identify oversights or errors on your part that could have given rise to the inquiry. You may attempt disclosing the same to the HMRC and working out a quick settlement with least amount of penalties.  In most of the tax investigations, HMRC carries out a complete review of your business matters. They may even delve into private affairs, such as investigating your expensive personal possessions. You will be requested to meet their inspectors for in-depth questioning. They might also ask you to provide comprehensive explanations and records to prove your statements. When it comes to providing any requested information or meeting with an investigator, you really want to remain truthful and provide the necessary information. Lying to the HMRC investigators is just likely to course more problems over the course of the tax review. Also, you want to make certain to be fully prepared for an in-person meeting and offer any evidence requested.

Once a duty audit has begun, it can take a few months or even more. Your bookkeeper can advise you on the way forward if HMRC is demanding too much data, taking a long period of time or generally acting irrationally.

GM Professional accountants offices are located in London , Essex and Manchester. 

 

How To Choose Accountants For Contractors

How To Choose Best Accountants For Contractors

How To Choose Accountants For Contractors

If you are searching for a skilled and qualified accountant that is able to specialize in a particular field, such as contractor accounting, then there are several key points that need to be fully considered prior to using the services of the right person.  Here are several tips to consider for choosing a reliable accountant:

1. Qualification.  In the process of searching for the right accountant, you will often come across a range of accountants offering a range of services. It is often the case that contractor accountancy requirements are often unique and specific. It is therefore vital to choose a specialized accountant that is qualified in this particular sector. Many of the larger accountancy practices or high street firms are more likely to focus on dealing with large corporations, personal tax planning, or small businesses which might not be suitable for your specific needs. In an initial interview with an accountant, you should ask whether they are specialized in dealing with matters that relate to contractors and that they are fully qualified on such requirements as the IR35. This is a key consideration and will often drop many of the high street based accountancy firms.

Find out more

2. CPA Reviews.  During your interviews, it is a good idea to have a list of questions ready for the accountants. The most important, and often overlooked, the question is whether they are a licensed CPA. Many people simply assume that all accountants are licensed. You don’t want to hire someone who does accounting on the side and never got around to being licensed. Find out how many accountants work with him at his firm. Having a large number could save you money because you could use the cheaper ones for less important issues. You also have to make sure the firm is used to dealing with a business of your size when choosing an accountant.

3. Trust.     Oftentimes, when people are choosing an accountant, the individual’s personality is forgotten. You have to remember that you will be working closely with this person, so make sure you choose someone you and the rest of your employees can trust. Convenience also should play a part in your selection. You may have found the perfect accountant. The only problem is that his firm is located hours away from your company. He no longer is the perfect accountant. Choose someone in your area because these are the people you know well and can trust.

4. Experience.    When looking for the contractor accountants it is also good to consider how long they have been in service. A contractor accountant with many years of experience has the capacity to do a good job since he/she has done the same thing over and over again. An accountant with a good experience know the various challenges likely to be encountered and how to deal with them. On the other hand, a contractor with little or no experience at all is most likely not going to give you the desired result.      The above are some of the things to look at when choosing a contractor accountant.

GM Professional accountants have offices located in London, Manchester and Essex

How to Choose Tax Accountants Online

Finding the Best Tax Accountants online

Filing your own tax returns can be a daunting experience and getting professional help an expensive ordeal. This is why more and more people are choosing to go online and finding themselves tax accountants online. Choosing tax accountants online not only helps you save time but helps you save money too. A simple Google search will give you access to thousands of tax accountants online but should you always trust them? The answer is no!   Calling yourself an accountant doesn’t necessarily make you one too. In order to be an actual accountants, one needs to have the proper certifications. In the UK, you can check a firm’s status by logging on to their Accounting body website.  

GM Professional Accountants are trusted tax accountants,  you can search through our reviews given by our clients on google and Yellow pages.

Find out more

Accountants in Ilford

The following list will tell you all that needs to be checked- 

Experience 

The first thing that you need to check is how experienced your accountant is. Is he/she a beginner? Have they worked with any companies similar to yours? Do they have famous clients? This is because experience matters. The more practice your accountant has had, the better they will be at their job.   If you’re filing tax returns for an individual, accountants that are beginners will be able to do the job pretty well too.   Qualifications  You need to make sure that your accountant has the necessary qualifications for the job they’re doing. In the UK, the most commonly recognized bodies are ICAEW, CIPFA, AAT and ACCA. Stay away from fake websites that lure customers by offering low fees, chances are the accountants aren’t qualified at all.  

Trust 

Choose your tax accountant online wisely. After all, this is the person who will have knowledge of every intimate detail of the finances of your company. The accountant could have loads of experience and be properly qualified but until you feel you can trust them, it is not advisable to hire them.   Transparency and Integrity  Before you hire a tax accountant online, make sure that you communicate your company’s rules and regulations. This ensures that the accountant is aware of the policies and he doesn’t deviate from them. Make sure that the accountant is following the generally accepted accounting principles. It is very important to have an accountant who has values and has integrity. You can ask for a list of old clients and verify with them. 

Why I Should Hire GM professional Accountants to do my taxes 

GM professional accountants is a trusted firm comprising of registered tax agents who are experts in their fields. The tax accountants are well qualified individuals who have complete knowledge of the tax laws in the UK. Whether you’re an individual or a business, the accountants at GM are committed to serving their clients and offering them the best financial advice. Not only do you save money but you can be sure that your finances are in good hands.

Specialists bookkeeping for Amazon seller

Specialists bookkeeping for Amazon seller

 There are many things one can look for in getting specialists bookkeeper in Amazon field. They are required to set priorities that will meet the bookkeeping and vat requirements, by having an understanding of the vat principles that will help to govern various activities within the Amazon field.

Find out more

The bookkeeper should understand the current events on overseas VAT regulations and accounting software packages when it comes to technology, be well conversant with the cost of different rates of vat and be ready to assist in these matter when problems arise.  

Accountants in London

GM Professional Accountants possess recommendable qualities and knowledge which we have attained from years of experience that includes tax planning, and be able to demonstrate those qualities into tax savings. GM Professional Accountants have experiences in the aspects of UK vat and this  boosted our reliability and makes our clients feel comfortable to focus on their business.

 There will be successful and progressive business when the bookkeeper implements good ledger skills and easily bonds with them by responding to various queries and concerns.

 Specialist bookkeepers understand the requirements of the Amazon Company to various services and can come up with strategies to solve business-related problems.

 When it comes to finances, they should be knowing how to secure account data, paying attention to every detail in the statutory accounts for accuracy. Find a good bookkeeper from a trusted source for instance, checking our google reviews and our accounting body.  Also, consider a bookkeeper who understands the local surrounding within the business area who will provide good detailed services to a customer that is remotely located.

As with any other business, effective bookkeeping for Amazon seller will need to provide current answers to many queries for an incredible financial outcome. First, there should be appropriate ledgers on invoices and expenses of a given period of time then the income and expenses analysed, this should allow you to make informed decisions.

 when it comes to tax assessment to avoid over or understatement of taxes, bookkeepers can help strategize for these taxes and many liabilities, giving a good report to the owner and planning for bank loans that will boost the business. It will also, provide a clear picture of how the company finances are progressing without missing out on any detail. Bookkeepers also maintain the aspects of finance intact with the goal of driving forward the business in a rewarding manner.

Gm professional accountants have offices located in Essex, London, Manchester.

Cost of an Accountant for small business

How much should an accountant Cost you in London

Hiring a poor quality accountant in London can cost you
dearly. In a city where individuals come to buy their fortune, they start new
businesses and, similarly, they fail every day. However, what is the contrast
between those who have staying power and those who overlap?

the cost of an accountant in London

Hypothesize to collect

Only one of each strange business starts with a massive
spending plan and, despite those who do, it may be tempting to remove the corners at the beginning. However, inv