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.

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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.

 

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.

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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 detailsSales Details
Date of procurementDate of sale
 Margin on sale (sales price less purchase price)
Purchase invoice numberSales invoice number
Stock number in numerical sequence 
Vehicle registration number 
Vehicle Description (for example, make and model) 
Buying priceSales price, or way of disposal
Name of vendorName 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.

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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.
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  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.

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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

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.

Company Formation Agent Accountants Tips

Company Formation Agent Accountants for Startups

Ready to set up your Company?

It is vital 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

  • 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.

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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.

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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.

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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.

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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.

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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.

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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.

 

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

 

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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.

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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.

 

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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.

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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

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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.

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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.

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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.

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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.

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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, investing in great financial planning can get more in the long term.

When a decent accountant can cost you a little more
initially, they should deserve at least some respect regarding saving you cash and helping you develop your business.

A decent accountant costs more since they leave out the
opportunity to understand your business and the procedures so that they are in
a situation that ensures that you are prepared for development and minimises
work quotas on the way. For a self employed package, it will cost between £25 to £30.00 per month. For a limited company package this could be between £70 to £80 per month if you are not vat registered.

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The most effective method to detect a horrible accountant

Billing per hour is something that many accountants still do. The problem here is that it gives the accountant an incentive to take as much time as necessary and allow the work to expand at the convenient time. It is not clear that this generates a better orientation, but induces a higher bill.

If an accountant forgets to set goals that begin before working or does not know what will be achieved or transmitted due to his work for you at that time, stay away.

On the off chance that things start to appear on your bill that you did not request, or did not become aware of what you required, you are generally correct to address them.

The bad skills of the organisation from time to time disappoint even the most sincere accountants. Be that as it may, losing a deadline will cost you money. In case your accountant consistently exceeds the timescales, it may be an indication that you can fight to meet the HMRC deadlines for your benefit.

A decent accountant

A decent accountant will cover the basics, such as your legal records or self-assessment. However, the best you can hope for is to guide you through your information so that you can take a look at your business
dispassionately. GM professional accountants are a highly reputable firm and have won the award by three best rated.co.uk

In addition to complying with the HMRC, you will not get an incentive from an accountant who does not think of freshness. When shopping, make sure you are looking for someone educated and interested in what you are
trying to achieve. As your business develops, you will need a lawyer to incorporate your business and VAT enlistment. It is useful to start with an accountant who will stay with you for a considerable period.

Past the balance

At GM professional accountants, we look beyond the balance sheet. Our clear way of dealing with accounting means that we unexpectedly work a bit. And in addition to a group of qualified and reliable accountants, when you hire us,
you also get your business manager who is committed to helping you understand your information in a way that allows you to develop your business.

GM Professional accountants have offices located in London , Essex, and Manchester.

How to declare property rental income

How to declare property income

 

While renting out your property to tenants can be a very profitable business, you need to know that you do not get to keep all the income. Legally, you are required to declare the income that you get from your property even if you are just renting out a small unit to a student. Although it’s required by law, many people still decide not to declare their rental income. Not declaring your rental income is not worth the risk since if you get audited by the government you will have to pay the tax on the income. You are also likely to pay penalty on interest on the tax that you were required to pay.

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How can HMRC found out about rental income?

Apart from using very sophisticated computer systems, HMRC has a variety of tools at their disposal with connections to the public databases such as the Electoral Roll and the Land Registry. They also regularly carry out tip-off campaigns and even pay huge rewards when any undeclared tax is finally found. They’ve even put in place tax amnesty that they give to those who come voluntarily.

not declaring rental income penalties

Another important trick that they use is obtaining information from third parties. For instance, they normally write to letting agents and estate agents instructing them to submit the names and addresses of all the properties on their books. This means many landlords who are not declaring their property income are likely to receive letters from HMRC.

How to declare property income

One method that landlords can use is taking advantage of Let Property Campaign and pre-empting the HMRC correspondence. Let the Property campaign is among the honesty programs that are currently being run by HMRC. According to this campaign, if the landlord comes forward and discloses undeclared income then HMRC will give him a much more lenient penalty. While most penalties are 10% they can even be as low as zero.

However, if the HMRC finds out about the income then the penalties can be between 15% and 100% depending on the conduct of the landlord. Let Property campaign is, therefore, a very important tool that can help the landlord to update their tax information. Since it will not always be there, landlords are advised to take advantage of it while it’s still there.

How to go about it

First, you need to alert them that you want to participate in this program by filling a form and calling their helpline. Once you’ve done this, they will give you 3 months determine and settle what you owe. By doing this, you may not have to pay any penalty but in case you do, it’s likely to be lower than what you would pay if HMRC finds out themselves. Thankfully, HMRC has Let Property Campaign calculator that can greatly help you work out what you owe them. However, if you need to disclose more than 5 years then there is a different calculator.

It’s also advisable to use an accountant so has to ensure that you have someone on your side when you are negotiating with them and make sure you are claiming the right expenses and reliefs. Although it can be tempting not to declare the income, the law requires you to do so.

 

GM Professional Accountants in Ilford

Accountant to claim tax refunds

Claiming Your Tax Refund

Claiming Your Tax Rebate
Claiming Your Tax Rebate

It is estimated that 1 in 3 people in the UK have overpaid on their taxes but are not even aware of it. This means that you too could be due a tax rebate which could amount to several hundreds or even thousands of pounds. Applying for a tax rebate typically means filling in numerous forms and completing a number of calculations and if you don’t have any experience of dealing with this kind of thing (which very few of us really do) then you may consider it to be too much hard work or your tax rebate claim may be unsuccessful despite having a genuine case.

The actual amount of tax you are required to pay on an annual basis will depend on your personal circumstances as well as how much you earn but it will usually amount to several thousands of pounds and could be anywhere from around one fifth of your total earnings to nearly a half.

If you have overpaid for any reason then you are entitled to claim a tax rebate and receive that money back. After all, it is money that you have worked hard to earn so why shouldn’t you claim it back if you have unknowingly overpaid? Whether you have only worked a part of a year, were made redundant part way through the year, or you are set to leave the UK you may be due some tax back.

The difficult financial situation that many of us find ourselves in means that every penny counts and none of us can really afford to lose an average of nearly 1,000 from our annual salary. You could spend the money on a family holiday, on paying bills, or on updating and upgrading your car. Most of us place our faith in our payslips, our employers, and the Inland Revenue to get taxes right and we don’t even check that we are being charged the correct amount. If you are part of a PAYE scheme then you could be owed several hundred pounds in backdated, overpaid tax and you should consider starting
a tax rebate claim in order to try and get this money back.

How to Calculate Your Tax Rebate Effectively

A number of taxpayers keep a check on all these issues with the help of a professional accountancy services provider. They help them in managing their accounts and keep them updated with such type of news so that they can file all the documents on time. Several tools are also available in the market, which is capable of estimating your amount for a return. These tools demand an input of all the relevant information for computing your return on the income tax that has been paid. These tools are available for free of charge and are very easy to use. If you are not willing to use these tools, you can always opt for professional accountants who will assist you in this task and provide you with refund estimation
in advance.

Every nation has different tax policies which depend on various internal factors. Thus, for estimating most accurate amount, you will need to provide certain personal information like marital status, yearly income, number of dependants, age, etc. These factors will define that for what amount of tax  refund you are liable. If any exemptions are there, the accountants will consider the factors from above to provide estimations.

Generally, the government decides if any year requires them to provide tax rebate to people who have made more tax due to some erroneous calculations. A rebate is decided for all the eligible tax payers by taking in account their different activities. This figure depends on different policies and from nation to nation. There are different schemes introduced every year in a country based on the current progress. They are provided as a facility to the citizens for cutting down on their taxes. These generally include different forms of investments, donations and various personal factors like if someone has low salary, belongs to armed forces, a widow, etc.

A lot of the above things depend on your accountant’s skill and the way they deal with it. It is always better to file your tax return on time to avoid any penalties which might cost you much more than what you had to pay. While working for your business, you tend to forget these things because of the daily work tasks that require much more attention. If you fail to abide by the deadlines which are set by governing bodies, it will become difficult for you to get any exemptions because of your bad record. This is the reason that putting all this in the hands of professional is a much better option.

GM Professional accountants have offices located in London, Essex, and Manchester.

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HOW TO CHOOSE A COMPANY NAME

HOW TO CHOOSE A COMPANY NAME FOUR YOUR BUSINESS STARTUP

HOW TO CHOOSE A COMPANY NAME
HOW TO CHOOSE A COMPANY NAME

One of the greatest challenges of starting a company is choosing the name for the company. It is a process that doesn’t need only dedication but also creativity. One has to be ready to come up with something unique and different from the other names around.

Choosing a Company name?

There are several names one can pick for his company but there is nothing as spectacular as a name that is both unique and unforgettable. Also, do not pick a name which spelling is unusual. Stick with something that customers can spell easily and is also easy to pronounce and remember. The shorter the length of the company name, the better. Also, pick a name that makes some sense. Lots of names have negative connotations in other languages. Try to avoid that embarrassment. Also, try to make sure your name is available. You can do this by checking up your preferred name with your State Incorporation site, Network Solutions for the domain name and the U.S. Patent Office for Trademarks.

Starting the Company Name Search?

When you want to choose a company name, you will have to do a Company Name Search. This is to
prevent embarrassments. Having the same name as another company is like infringing on someone’s right because many companies have had their names trademarked. This is to stop callous elements from trying to make a fortune off their name or dupe people. Whichever way, it is good if a name search is done before picking a name for your company. You can do this by searching through the internet, telephone and trade directories. A lot of companies have their domains online and you will definitely see the same name as the name you chose for your company if you search through. This will prompt you to choose a more unique name.

The Law and Your Company Name?

A company name is an important and valuable part of your business. It can be used to reflect what
the company does, or the attitudes and ideals that you want your company to embody. A lot of people, complying with their State laws have gone ahead to register their companies with their State. This may prevent someone from using your company’s name within the State but it doesn’t affect the country. What gives you absolute power is the trademarks right. Only federal registration gives you truly comprehensive rights. When this is done, your-company-name-is protected by the law and cannot be used by someone else. It becomes your sole property.

Protecting Your Company Name?

If you have a unique business name and you don’t want someone else picking it and using it as their
own company name, you have to take steps to protect it. First you have to register the name of your company either as a sole proprietorship or partnership. The process of incorporating your company comes next. This is done with the Secretary of the State your company is located. This will prevent
confusingly similar names from popping up in the future.

Choosing a Company name FAQ

The purpose of an FAQ is to address frequently asked questions about your company. The FAQ is always featured on the site of the company. It can act as a point of contact for customers looking for answers-before they reach out to you directly with your questions. So it is important to choose your FAQ carefully. FAQ featured should be able to alleviate purchasing anxieties that your product page doesn’t address directly. It should also be able to earn trust by demonstrating product expertise and explaining your business model. Customers should be delighted when the page creatively answers their questions.

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How to maximise your CIS HMRC Tax rebate

Claiming Your Tax Rebate

It is estimated that 1 in 3 people in the UK have overpaid on their taxes but are not even aware of it. This means that you too could be due a tax rebate which could amount to several hundreds or even thousands of pounds. Applying for a tax rebate typically means filling in numerous forms and completing a number of calculations and if you don’t have any experience of dealing with this kind of thing (which very few of us really do) then you may consider it to be too much hard work or your tax rebate claim may be unsuccessful despite having a genuine case.

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How much Tax have you Paid

CIS Tax rebate in London

The actual amount of tax you are required to pay on an annual basis will depend on your personal circumstances as well as how much you earn but it will usually amount to several thousands of pounds and could be anywhere from around one fifth of your total earnings to nearly a half.

If you have overpaid for any reason then you are entitled to claim a tax rebate and receive that money back. After all, it is money that you have worked hard to earn so why shouldn’t you claim it back if you have unknowingly overpaid? Whether you have only worked a part of a year, were made redundant part way through the year, or you are set to leave the UK you may be due some tax back.

The difficult financial situation that many of us find ourselves in means that every penny counts and none of us can really afford to lose an average of nearly 1,000 from our annual salary. You could spend the money on a family holiday, on paying bills, or on updating and upgrading your car.

Most of us place our faith in our payslips, our employers, and the Inland Revenue to get taxes right and we don’t even check that we are being charged the correct amount. If you are part of a PAYE scheme then you could be owed several hundred pounds in backdated, overpaid tax and you should consider starting a tax rebate claim in order to try and get this money back.

How to Calculate Your Tax Rebate Effectively.

A number of taxpayers keep a check on all these issues with the help of a professional accountancy services provider. GM professional accountants help them in managing their accounts and keep them updated with such type of news so that they can file all the documents on time. Several tools are also available in the market, which is capable of estimating your amount for a return. These tools demand an input of all the relevant information for computing your return on the income tax that has been paid. These tools are available for free of charge and are very easy to use.

If you are not willing to use these tools, you can always opt for GM professional accountants who will assist you in this task and provide you with refund estimation in advance. Every nation has different tax policies which depend on various internal factors. Thus, for estimating most accurate amount, you will need to provide certain personal information like marital status, yearly income, number of dependents, age, etc. These factors will define that for what amount of tax refund you are liable. If any exemptions are there, the accountants will consider the factors from above to provide estimations.

Generally, the government decides if any year requires them to provide tax rebate to people who have made more tax due to some erroneous calculations. A rebate is decided for all the eligible tax payers by taking in account their different activities. This figure depends on different policies and from nation to nation. There are different schemes introduced every year in a country based on the current progress. They are provided as a facility to the citizens for cutting down on their taxes. These generally include different forms of investments, donations and various personal factors like if someone has low salary, belongs to armed forces, a widow, etc.

A lot of the above things depend on your accountant’s skill and the way they deal with it. It is always better to file your tax return on time to avoid any penalties which might cost you much more than what you had to pay. While working for your business, you tend to forget these things because of the daily work tasks that require much more attention. If you fail to abide by the deadlines which are set by HMRC, it will become difficult for you to get any exemptions because of your bad record. This is the reason that putting all this in the hands of professional is a much better option.

 

How to benefit from Freeagents Software

Freeagents Accountants Guide

What is FreeAgent Software

FreeAgent is a cloud-based bookkeeping solution for freelancers, bookkeepers and also tiny businesses proprietors to handle invoices, costs, pay-roll, income tax return as well as other accounting tasks. FreeAgent additionally uses specialized mobile apps for iphone as well as Android tools.

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How We Help with FreeAgent Software

FreeAgent makes it possible for Tax advisors to prepare up recurring billings which are instantly sent out to clients as suggestions making payments. Consumers can also track costs by uploading the photograph from an expense voucher with the FreeAgent mobile phone app.

Freeagent Accountants London

The option gives an integrated stopwatch attribute to manage
timesheets as well as keep track of employee hours. The user dashboard gives a summary of key organisation metrics from a singular display screen. Company proprietors can easily track billings, price quotes, timetables and venture condition.

Tax timeline functions and additionally offers updates and reminders concerning deadlines and tax dues. FreeAgent utilizes a 256-bit safe and secure outlet level relationship to protect customer records.

Finalising Statutory Accounts in FreeAgent

The FreeAgent software enables you accurately order your companies profit and loss account, notes on the accounts and the directors assessment, your auditors report. With the FreeAgent software we can help you finalise your statutory accounts easily and effectively.

For smaller companies what is needed is the balance sheet and tax returns in order to properly finalise statutory accounts.

Features of FreeAgent Software

Access to Overview
FreeAgent is fantastic because that permits you to look at each of your accounting information in one place. The 1st Online control panel is crystal clear, to the point and transparent. When making use of a typical accountant it may be actually tough to gain access to this kind of information
without a large volume of email or telephone call back-and-forth.Along with the FreeAgent dash panel, the review is accessible to you whenever you require this.

Fast Access to Information
You could quickly track the progress of your service profiles with a glimpse at thedash panel. We assume this simplifies the accountancy process through a very long way. You can find the modifications created to your financial resources on your own.

Choosing an Online Accountant
It used to be very important to have your business’s bookkeeper found in a location not far away. Yet today, even more providers are collaborating online, making use of cloud-based innovation to handle their organisation.

This means that place of operation is actually far less from a concern. With cloud accounting, you and also your accountant may look at identical real opportunity data together– despite where you are actually.

The choice regarding where to find your accounting professional definitely comes up to exactly what satisfies your company well. Relying on exactly how you wish to manage the financial resources, your accountant might definitely be
located in a different part of the globe. For instance, if you more than happy to collaborate via e-mail, phone calls, video-conferences, or protect. bookkeeping software, then you can be in New York and they might be in London, if your bookkeeper can easily be actually anywhere, you can easily discover someone which truly recognizes the specifics of your service or even market.

Choosing an Online Accountant In London
Choosing an online account in London  is very essential because it ensures your account, understand the laws of the land and to properly administer your financial records with respect to the national regulations.

GM professional Accountants have offices in Essex, London and Manchester.

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

How To Obtain A Free Valuation For Your Property

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

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Free house valuation

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

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

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

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

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

 

How to get a ballpark valuation

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

a) Using price multiples

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

Comparison

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

b) Bring in professionals

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

Can making repairs increase the value of the house?

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

Considering Capital Gains tax on your property

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

Conclusion

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

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How to change my accountant – considering switching?

How to change my accountant – considering switching?

How to change my accountant - considering switching
How to change my accountant – considering switching

Introduction

When it comes to changing service providers especially accountants, most people are often reluctant. Even with poor services and total dissatisfaction, most clients remain loyal to their accountants. This tendency might be as a result of certain perceptions that clients hold with regards to the whole process of changing an accountant.

These include;

  • The notion that changing an accountant is a risky process.
  • Doubting whether another accountant will be any more effective that the current one.
  • The notion that changing an accountant is a difficult process.

In this article, I will provide information on how the process is undertaken, offer reasons as to why one should change their
accountant and offer a review of GM Professional Accountants.

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How to change your accountant?

A clear procedure is provided for within the accounting profession on how one should change their accountant. At this point, I should mention that this process is common and legitimate accountants will take the whole process professionally.

The steps you are to follow as a client when changing you accountant are;

Give your accountant a notice.

This notice is written to the current accountant. It can be in form of an email. It details which companies you would like to move to new accountants. It also provides information on the date in which the move should be completed. In the notice, it is important that you provide information about the new accountant. The notice is important as your current accountant must have a written statement from you before they can move your financial records to another accountant.

Preparation of a professional clearance letter.

After you have provided your current accountant with a notice, your new accountant will usually send a written document to your
current accountant in order to request for a professional clearance. The accountant will request for professional clearance as well as any paperwork relevant to you from your outgoing accountant.

As part of due diligence, your new accountant will ask the current one whether there are reasons why they should not take you on as a client. The professional clearance letter also provides an avenue where the current accountant can point out issues they have had with the client. They include issues to do with the client’s honesty with regards to their finances. This serves to point out fraudulent clients.

I should point out that your current accountant may charge you a fee for this service especially when a lot of work is involved.

Transferring records and assignment of authority.

At this point, when everything else is complete and it is all in order, the outgoing accountants will transfer your financial records to the new accountant. This is usually an easy process. After the records have been transferred, you may now assign authority to the new accountants so as to allow them to handle your tax affairs including filing your tax returns.

When should you change your accountant?

In a case where your accountant is not providing tax planning advice, then it is time for a change. An accountant should offer
relevant advice on ways to reduce your tax bills. Your accountant should essentially help you pay the least amount of tax you are legally required to pay and not just filing tax returns.

For effective financial administration, communication between you and you accountant is key. Hence, if your accountant fails to pick your calls or takes too long to reply to your emails, then this is a red flag and it is time to look elsewhere.

For a case where your business might have outgrown your accountant, then it is time to get a new accountant. This can be signalled by your accounts becoming too complex for your accountant. It might also be the case that your accountant has outgrown you. This might be the case for a small business in whereby, a very large accounting firm might not offer you the best value for your money and as such you might want to get a different accountant.

Why you should choose GM Professional Accountants firm?

GM Professional Accountants is a well-established accounting firm based in London that offers a variety of financial services to businesses and individuals in various industries. The services include but are not limited to; accounting services and tax management services.

The firm also offers online accounting which increases flexibility for those in far-off areas. Another key aspect of the firm is that it offers adequate small business accounting ensuring that even for a small business, you get the relevant accounting services. The many 5-star reviews on google ratings from satisfied clients portray a well-structured firm where everyone gets the necessary attention ensuring seamless service delivery.

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How to choose the best property accountant

How to choose the best property accountant

How to choose the best property accountant
How to choose the best property accountant

Owning property in the United Kingdom is not easy for first-time buyers. It is important to hire property accountants to offer you insights and advice on your investments. There are many property accountants in the UK. However, selecting the best accountants can be one of the most daunting tasks. It is advisable to compare more than one accountant in the nation before making your final decision. Here is a simple guide to finding a great property accountant in the UK.

Reviews

It is advisable to read reviews of different property accountants online. Reviews will enable determine whether the services you are about to hire are worth your money. There are different sites that offer reviews on various services including property accounting. Read several reviews in order to make an informed decision. Do not waste time and money hiring an accountant with many negative reviews. If other clients are lamenting about the services they received from the accountant then you are equally not safe. Only hire services of an expert with positive reviews if at all you care about your investment.

Yellow pages

Yellow pages offer information on different services across the United Kingdom. The platform has contacts, address and other details of property accountants. You can check the contacts to find property accountants near you. Once you have selected several accountants, you can consult them to find out the kind of services they offer before you make any move as far as property ownership is concerned.

Google

With the growth of technology, property accountants have also opted to create their presence on the internet. Google has an endless number of property accountants who can come to your rescue whenever you want assistance. The accountants offer different services at different costs. However, it is wise to conduct proper research before accepting to work with any of the accountants you will find online. A good number of Google property accountants promise what they do not deliver. Read what others are saying about the accountant you are about to hire before you determine your next move. Failure to conduct research is likely to make you land someone who will fail your investment with poor analysis. If you decide to hire an accountant from Google then you should consider the following aspects

Qualifications

Academic qualification is among the aspects you cannot afford to ignore when hiring a property accountant in the UK. You need to find someone with the right academic qualifications. A good accountant is one who studied in an accredited institution. He or she should also be a member of different chartered accountancy organisations in the UK. The accountant needs knowledge to advice you on capital gains tax and income tax. This will only be possible if he or she is qualified.

Experience

Find out how long the accountants have been offering services in the UK. An experienced accountant is better placed to offer high-quality services than a new entrant in the field. This, however, does not mean that new accountants do not offer great services but it is hard to determine the same.

Cost

The cost of hiring an accountant varies across the United Kingdom. Find out what you will end up paying in reference to the quality of services before hiring one. You can compare several service providers before you select one for your firm.

GM Professional have offices Located in London, Manchester and Essex.

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Top 10 Profitable Businesses to Start From Home in the UK

Top 10 Profitable Businesses to Start From Home in the UK

Top 10 Profitable Businesses to Start From Home in the UK
Top 10 Profitable Businesses to Start From Home in the UK

Starting a business in the United Kingdom these days is not as difficult as it used to be. This is because of the rise of online commerce and all the business tools and resources that are associated with it. And of course, there’s the fact that the capital needed to start a business venture from scratch has significantly gone down. With just a few thousand pounds, you can start a small business and launch it within a short period of time. If you’re planning to start a business anytime soon, below are some venture ideas that you can explore. Also included in the list are the estimated profit percentages associated with the venture.

1. Real Estate Agents (15.19%) – All you need to start a real estate brokerage firm is an agent or a brokerage license. The returns can be very lucrative especially if the economy is doing well and the value of properties go up.

2. Ecommerce Website (15.10%) – The biggest advantage of building an ecommerce website is that you don’t need much to launch it. You can have a complete website built and launched for under 100 pounds. Another benefit of ecommerce is that you can choose to either sell other people’s products through affiliate marketing or you can create your own products and keep most of the profits.

3. Automotive Rental or Leasing (14.55%) – With more people getting disenfranchised by traffic and commuting, now would be the perfect time to offer automotive rental services. You can start with a few cars and when things go well, you can slowly expand your services.

4. Legal Services (14.48%) – This has very low operating costs. And if you’re good, you can accumulate a lot of repeat clients. You can also branch out to notary services.

5. Industrial Machinery and Equipment Rental (12.58%) – This can be very profitable especially if you live in an industrial region where there’s a boom in construction projects. The only drawback of this business is that you are going to need a huge initial capital.

6. Business and Management Consulting (12.05%) – Business consulting is in huge demand these days especially with the rise of online commerce. There are companies and human resource managers out there who badly need advice from business consultants.

7. Design Services (11.4%) – The creative industry caters to a huge market. You can focus your attention on a specific niche like graphic design, industrial design, product design, or illustration.

8. Office Administrative Services (11.3%) – Businesses and companies from all over the world are always looking for third parties to manage their administrative operations. You can offer services like record keeping, billing, or even financial planning.

9. Social Media Management Services (11.2%) – Social media is big business right now. Social media presence is a very important aspect of marketing these days that it has grown into a separate industry. Starting a social media marketing firm is easy and you don’t need a lot of capital.

10. Technical Consulting Services (11%) – Almost all businesses these days are in one way or another in need of technical support. This is where you come in with your technical consulting services.

When it comes to returns on your investment or capital, these are the most profitable business sectors in the country today. Needless to say, you should trail your sight on these sectors if you have plans of starting your own business. You have better chances of achieving success if you focus your attention on these sectors.

Let property campaign helps landlords bring tax affairs up to date

Let property campaign helps landlords bring tax affairs up to date

Let property campaign helps landlords bring tax affairs up to date
Let property campaign helps landlords bring tax affairs up to date

If you are a residential landlord in UK and you want to get your tax records straight and accurate, then the Let Property Campaign is for you. HMRC believes that all people should get an opportunity to pay the right amount of tax and this campaign is for those who have some inaccuracies in their tax records. If you are a landlord and you have some undisclosed income, then you should immediately contact HMRC regarding it. They will give you a time period of 90 days to calculate all your undisclosed income and finally pay what you owe.

Why it’s important to join the campaign?

This is a great opportunity to reveal your undisclosed income even if you have not disclosed it intentionally. The advantage is that HMRC is allowing you to tell what you believe how much you should pay as penalty. In case it was unintentional, then you may not need to pay at all. And don’t worry about the amount of penalty. If your financial position is not strong, HMRC will allow you to pay in instalments.

How to Avoid Paying Capital Gains Tax on Your property

Tax Advisers on planning and dealing with Capital Gains Tax on Your Home

Capital gains tax or CGT is the tax on profit paid when one disposes of an asset. It is charged on profits made from selling any property that is not your residential home. Fortunately, you can waive this tax, and a London expert on tax matters shows you how.

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Capital Gains Tax Rates

The amount of CGT charged in the UK on assets differs according to certain categories. For individuals, the capital gains tax rate ranges between 18% and 28% of the amount gained on disposing of an asset. Trustees or representatives of say a deceased person is required to pay 28%of the gains made from disposing of assets they are trusted with or representing.

Any gain that qualifies as Entrepreneurial Relief will be charged 10% on gains. Private companies not based in the UK will be charged 20% on gains for disposing of assets that were owned by the UK. Property whose Annual Tax on Enveloped Dwellings has been paid will be viable for a 28% capital gains tax.

capital gains tax on property

Annual Tax Allowance or Exemption

Residents in the UK are eligible for tax-free allowance on CGT. This tax relief is applied annually and under certain conditions. Individuals who are domiciled in the UK qualify for the annual tax exemption on gains. Trustees or representatives of an estate previously owned by a deceased individual also qualify for tax exemption. Thirdly, trustees of disabled persons also get an annual tax relief on asset gains.

On the other hand, there are individuals or groups that are not eligible for an annual tax-free allowance in the UK. This includes any individual who is not a permanent resident in the UK but owns assets in the UK. Private foreign companies holding assets on UK soil also do not qualify for annual capital gains tax exemption. Anyone who has claimed remittance basis from a foreign country instead of the UK will also not qualify for annual exemption on capital tax gains.

Annual Exempt Amount

The annual exempt amount is a marked amount which qualifies individuals and companies for annual relief on capital tax gains. This amount varies with each year depending on revisions made by the UK government. For the period 2016 to 2017, the annual exempt amount on gains made by individuals was £11,100. This amount has been revised to £11,300 for period 2017 to 2018. For trustees, the annual exempt amount for 2016 to 2017 is £5,500 which will increase to £5,650 for the period 2017 to 2018.

To avoid capital tax on the gain, individuals and trustees must ensure their total annual profit does not exceed the set annual exempt amount.

Other Ways to Avoid Capital Gains Tax

Capital gains tax will only be applicable when an individual or trustees sell property that is not their own residential home. Selling anything else like a business, second home, or shares automatically mandates the paying of capital gains tax.

Capital gains tax on a second home applies where one is selling a buy-to-let home or a resort home. The capital gains tax paid will be high but one can make it lower. Once a profit or gain has been made, deduct expenses like legal fees, stamp duty, real estate fees and any other expense. Secondly, deduce your allowance from the remaining amount. Calculate the gains tax on the net amount using your income tax status; this will likely be between 18% and 28%.

Letting relief is another way to avoid paying capital tax on gains. This relief is offered on any gains made from selling property that has been the taxpayer’s home for a period of time. This relief also applies if the said property was once rented out as residential accommodation. However, capital gains will be charged albeit it will be a smaller amount of what would have been originally charged.

The regulations on capital gains tax keep changing each year. It is important to consult the advice of tax accountants to calculate how much you should pay or whether you qualify for tax relief.

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Uber Driver Tax return Accountants Guide

Uber Tax return Accountants Guide

Uber is a leading transportation company, operating in 633 countries worldwide. It has its headquarters in San Francisco in the United States. The company mostly operates via the mobile app and allows users to book vehicles via the application. Also, independent, self-employed drivers can register on the app or website and become a member of Uber community. They allow attractive rates per miles and also flexible timings as per driver preferences. The company has got firm roots even in the United Kingdom.

What are the allowable expenses for Uber
Drivers?

Knowing the list of allowable expenses is important as it will reduce your tax bill. You need to pay tax on the amount earned minus the allowable business expenses. So make sure you keep a note of these.

  • Mileage claim – You can do this claim if you own the car. The
    rates are 45p for the first 10k miles and 25p thereafter. If you make this
    claim you are not eligible to claim for the cost of the car, servicing,
    and insurance.
  • Car purchase – If you purchase a new vehicle, you may able to claim it all (depending on the private use) or the cost over a few years. Rates are as follows :
  • 75g/km-130g/km (CO2) you will get 18% capital allowances.
  • 130g/km or more you will get 8% capital allowances
  • Car lease payments – You can redeem the monthly cost of the lease as well as fuel cost, servicing, insurance, and repair cost.
  • Uber commission and service charges
  • Tolls and Parking charges
  • Business usage of your phone
  • Accountants fees
  • Vehicle and Public Liability insurance
  • Car cleaning
  • Bank charges

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The four major bookkeeping requirements for tax management of an Uber driver are as follows:

1. You must register yourself as a self-employed individual on the HMRC website, 

2. Make sure that you keep the receipts and expenses of all the business transactions handy.

3. Complete self-assessment of the income and expenses must be done prior to 31st January of each year.

4. Any pending tax or National Insurance must be paid before the due date of 31st January.

 

However, being an independent self-employed driver makes it difficult for some people to handle their taxes. Few drivers are not educated enough about the taxes and other legal guidelines of bookkeeping. Due to this, they may land up in paying extra money or some kind of penalties as well. To avoid such a situation, it is very much important to understand the tax mechanism and hire a proper accountant for your needs.

How to find a good accountant for your
business:

There are several accounting firms as well as private accountants that provide accounting services for Uber drivers to
manage their accounts in the UK. As there are lots of receipts and expenses on a daily basis, the bookkeeping process is little tedious, but if the driver maintains a proper logs or file of the receipts then it can become very easy.

Many of the accounting firms also provide Mobile apps to the uber drivers to record their transactions in an easy way.
Major responsibilities of the firms include:

  • Helps in creating profile in HMRC
  • Does auditing to judge the real profit of the driver
  • Can provide mobile app for the HMRC Self-assessment, Housing benefit applications as well to know your tax credits
  • Keep track and note of all the business income and expenditure
  • Register details of the vehicle mileage and other details of the vehicle
  • Provides accounts that are ready to be submitted for filing HMRC Self-Assessment return
  • Gives advice on record keeping
  • Helps in Tax investigations.

The cost of hiring an individual accountant for tax consultation in the UK can be less than 250 GBP, however, for companies; it can vary between 600 to 650 GBP. The services provided may vary as per the pricing. You must research the company or individual over the internet properly and read reviews and ratings before hiring for your tax management.

See our Ecommerce guide, for online businesses.

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Choosing an online accountant for your small business 

Choosing The Right Accountant For Your Business

Determining an accountant for your business is a significant and complex choice. You aren’t just hiring a number cruncher; you’re hiring an essential business partner as well. So, as with any business partner, you must make sure that they understand your business.

Online small business accountants 

Online  accountants for self employed play a vital role in the modern day business world, as they offer many vital services such as completing your tax returns, bookkeeping, cash flow projections, payroll, and even online accounting. If you run a small business, making the right choice is particularly important because at the outset your accountant is likely to be your only professional adviser.

Well, don’t worry – this article is all about imparting the key steps towards finding the perfect accountants. You may think it’s as simple as looking one up in the phone book, but the brutal truth is that just about anyone can call themselves an accountant without any real qualifications. Finding a bona fide, experienced accountant takes much more effort.

 

 

online accountants for self employed

The following steps are designed to cut through the dross and find you the perfect accountant:

– Ask for referrals to accountants from other business owners.

– The Institute of Chartered Accountants, the Association of Chartered Certified Accountants, AAT, and The Chartered Institute of Management Accountants – these are seals of approval that you should insist on finding. If your accountant can’t produce any of these on demand, then look elsewhere

– Meet your accountants in person for one-to-ones – do this several times before you make a decision. Ideally, you should be able to communicate freely and easily with each other.

– Outline your current and predicted needs of your business so your accountant can meet them and synchronise their efforts.

When it comes to cost – be cautious. The first consultation, where you begin ascertaining whether or not they’re right for you, should be free. Most accountants offer this service, but it’s always good to check, just in case. Also, always decide upon a fee limit early on with your accountant – if they only seem interested in making money for themselves, they aren’t right for you. Also, make sure they are capable networkers, able to provide you with contacts and arrange meetings with integral supporters such as suppliers, bankers, and customers

In addition to your accountant’s financial knowledge, you can also have personalised cash flow projections, have your bookkeeping and payroll managed efficiently and provided important advice. Fuelled with your data, there’s no limit to what your accountant can do – it’s just up to you to find one with the right skills to match your business.

Setting up a day-by-day accounting system, however, should be a priority, whether it’s merely compiling an organised ledger system or a more sophisticated computer programme. Your accountant should be ready to assist and advise in setting this up.

Never underestimate the power of the accountant in your business. Their knowledge of finance and business will no doubt exceed those of the first-time businessperson, so don’t underestimate the power they have. Treat them with respect, but also let them know where their responsibility ends, after all, you’re the boss.

Accountants are a regular benefit to your business – they’re experienced, capable and potentially crucial in the running of your business. Without a proper accountant, your chances of financial survival in an increasingly competitive market drop significantly.

What does a 1100l tax code mean?

What does a 1100l tax code mean?

A 1100L tax code means that your tax-free personal allowance is £11000. Simply put, that means £11000 of your earnings will be paid untaxed throughout the year, in equal increments over 12 months. The “L” refers to your status as a regular employee who is eligible for that tax-free personal allowance. Any income above £11000 will be taxed at the standard rates, and, if you make over £100000, your tax-free personal allowance may be smaller than £11000. Any income over this tax-free personal allowance, but below £33000, will be taxed at the basic rate of 20%.

What affects my tax code?

Many factors affect your tax code, including the aforementioned tax-free personal allowance. First, your tax-free personal allowance will be calculated; next, any untaxed income or job benefits with monetary value are added up, and that amount is deducted from your previously determined personal allowance. The last digit of this number is removed–hence, £11000 becomes 1100. The ending letter (L, for example) refers to any situation which may affect your personal allowance, such as the Marriage Allowance, or being taxed at Scottish rates.

tax code 1100l

Benefits in kind

“Benefits in kind” is the term for those job benefits with monetary value which are not included in your salary, such as childcare or a company car. As mentioned earlier, while these benefits are not included in your salary, their value will be deducted from your personal allowance.

Expenses

Claiming tax relief for expenses is one way to ensure you are paying only as much as you truly owe in taxes. “Expenses” in this context refers to items or travel purchased solely for work use, such as business travel. It is important to note that you cannot claim tax relief for expenses your employer has reimbursed you for, or for items purchased despite your employer providing an adequate alternative. To claim this tax relief, use your Self Assessment tax return if that is already your usual practice, or use form P87 if you do not file a tax return for any claim below £2500. If you wish to claim an amount over £2500, you must use the Self Assessment tax return.

What is the the tax code for 2017-2018?

The 2017-2018 tax code is 1150L, meaning your tax-free personal allowance has been raised! Additionally, the “basic rate limit,” or the amount of your income taxed at the basic rate of 20%, has been raised to £33500 from £33000

What if I have two jobs?

If you have two jobs, one job will be classed as your “main employment,” and you will receive your tax-free personal allowance in full. For your second job, all of your income will be taxed at the standard rate of 20% up to £33,500. This job will be considered your “secondary” job. If your income at your “main” job is less than your tax-free personal allowance, then you may request your personal allowance be distributed between both your incomes, or you might request a refund at the end of the year (when you file your tax return, if you do so).

How to choose the best CPA online – 5 Things To Consider

How to choose the best CPA online – 5 Things To Consider

It is always a challenging task to choose a CPA for your business from the

How to choose the best CPA online - 5 Things To Consider
How to choose the best CPA online – 5 Things To Consider

deluge of accountants available online. There are around 76,000 qualified accountants in UK and this will add to the dilemma of choosing the right one. London has some of the most renowned accountancy agencies but you need to be aware of certain steps in order to hire the right CPA for your company.

1. Experience

If you want to ensure that you are getting the correct tax advice, do not forget to check the experience of the accountant. It is important that the CPA has worked with similar sized companies and had job responsibilities that were at par with the job role offered. Accountants will also be only valuable to the company if they have worked in similar industries and can provide expert advice on the tax system. CPA’s have to also keep abreast with the latest tax laws running in the country and have to report periodically to accountancy associations about their development.

2. Trust

You will not always depend on employees but this is not an option where it comes to choosing an accountant for your firm. You need to trust your CPA inside out to be able to confidently grow your business. Accountancy embezzlement is not totally unheard of and needs to be paid attention to. You should perform a thorough background check via Google or yellow pages etc. Be extremely wary and alert when you are interviewing the person. You need to establish beyond doubt whether he is going to be with your company for the long term.

3. Qualification

Anyone can call themselves an expert in the UK tax system but you will not hire them unless they possess technical qualifications in accountancy. Usually everyone starts with the AAT qualification and then gains experience. While they climb the career ladder, accountants can get higher qualifications to expand their job roles in bigger companies. Once the CPA has a basic qualification, they can register into a training contract with an ICAS authorised employer to become a chartered accountant. It is highly prestigious for a chartered accountant to follow this route.

4. CPA reviews

When trying to find an accountant online, you can always check the reviews that they have acquired from various firms/individuals they have worked for. There are many dedicated websites that review the accountants and you can find valuable information in these reviews. There is of course an option to choose an agency instead of an individual and there are again review websites for them. Glassdoor.co.uk, yell.com, ukaccountancyfirms.co.uk/reviews etc. are websites that will help you to choose a high calibre CPA. The reviews will contain a lot of polarised content so be alert in making your decision.

5. References

Always request the CPA whom you have shortlisted to provide the necessary references of people. You can then conduct a thorough investigation into the previous employers of the CPA. Prevention is always better than cure so it is important to interview the references provided and check for consistency in their information. References can be a good judge of one’s character because you can always tell a person by the company he/she keeps. Also, in the event of a mishap, you can always contact the references for more details.

It will definitely be to your benefit to keep in mind the above factors while you search online on search engines like Google, Bing etc. for the right CPA for your business.

THIS IS WHY YOUR SUBWAY SANDWICH WILL COST YOU A LITTLE MORE THANKS TO NEW TAX

THIS IS WHY YOUR SUBWAY SANDWICH WILL COST YOU A LITTLE MORE THANKS TO NEW TAX

Subway has been hit by the new taxation laws in UK, where any hot and toasted subs will be imposed a 20% VAT. Everybody knows that Subway is one of the favourite stopovers for
quality, fresh, well-wrapped and hot fast food that now goes for an extra cost thanks to new VAT law that was proposed by George Osborne in 2012.

Vat Accountants in London

Subway’s effort to protest the new imposed charges has been in vain, even after trying to re-brand their toasted subs to “hot bread sandwiches’ in order to protect the interest of their customers without increasing the price. A spokesman from subway said: “We have been trying to challenge this VAT law since 2012 in order to protect our customers. Subway franchisees have been absorbing the VAT cost, charging a single price for food, whether hot or cold or eat-in or take-away.”

A standard 6 inch sub could cost as much as £3.69 before the introduction of “pasty tax” on VAT. This means that as per now, the customer who wants their sub to be heated up should
add a 20% (equivalent to 69p) which sums up to £4.18 for a single sandwich. Having a sandwich toasted has become a standard procedure to many customers who expressed their unhappy thoughts about the new prices on social media. “Absolutely ridiculous that Subway now charge for toasted bread.” a customer pointed out on twitter. “What next? Charging us to use the bathroom? #subway”, another one expressed his anger. It should not be a surprise that some customers have not noticed about the price changes, saying that they are just consuming their subs. “Has there been a recent change in VAT law I’m not aware or are Subway just taking the ****?”.

A customer on HotUKDeals said: “Just saw a sign in my local Subway saying they’ll
shortly start charging 20% VAT if you ask for your sandwich to be heated
up,”.

“Am never going again” said a fuming customer concerning the new tax rules.

Another one commented “What is this all about? Bold strategy from them. It’s the quickest way to annoy people.”

The rise of charges on heated subs has forced subway to lower the prices of products that do not attract VAT. “Currently Subway stores in the West Midlands are testing a different structure for menu-pricing. The dual-pricing menu is similar to what customers see on other high-street chain menus, which ensures that customers pay the lowest price for products which do not attract VAT.” Subway spokesman said in a statement.

This new tax rules which were made effective as from 9th August 2017 are said to be
politically affiliated. It came as a surprise to the Subway customers across all the cities in the UK who are in need to refuel when lunchtime approaches. Since there is nobody has the will of taking a cold meal deal, they perhaps have no option than to have their sandwich or sausage roll toasted and warmed. The pasty tax (2012) also indicated that you have to pay some extra cost if you have to eat in. in contrast to this cold food are not taxed. This could have an advantage to only those who have their sub as a take away to warm in their
homes.

The introduction of the new VAT rules on hot and toasted sandwiches is just an indication that customers will lower their demand on the product and some will even look for other substitute products. An alternative idea that subway can opt to do in order to retain their customers is to improve the quality of their sandwiches and introduce some offers. It is clear that this pasty tax is against the will of people.

 

Legitimate Ways to Beat the Taxman In The UK

Legitimate Ways to Beat the Taxman In The UK

Although paying less tax is the desire of every tax payer, it remains a dream to most of the taxpayers in the UK because tax avoidance has been limited to multi-national corporations; not small businesses. Besides, findi

Legitimate Ways to Beat the Taxman In The UK
Legitimate Ways to Beat the Taxman In The UK

ng information on how to reduce your tax bill may be tricky. However, all is not lost as far as saving tax is concerned as there are various practical ways for individuals and small businesses to minimise tax. One way to get information on how to save your taxes is to consult tax experts such as tax accountants. The following are applicable tax saving mechanisms you can apply:

i). Top Up Your Pension

This involves contributing more into your pension scheme. This should be done by your employer, who should be responsible for deducting the pension from your salary before it is taxed. For instance, if your yearly earnings amount to £50,000 and
your yearly pension contribution is £3,000, then your taxable income will only
be £47,000. However, if you decided to contribute only £1000 a year towards
your pension, your taxable income would be £49,000, meaning you would pay
more tax.

ii). Trust A Spouse

Trust is a major building block of your relationship with your spouse or civil partner. Likewise, trust can be handy when it comes to saving your taxes. All you need to do is to determine who pays lower tax between the two of you. Moving your savings into the name of the spouse or civil partner with the lower tax rate helps you to save a great deal. For instance, if one of you is under high tax rate and the other is a basic taxpayer, it would be economical to move your savings into the name of the spouse or partner that pays taxes on the basic rate to reduce your tax bill.

iii). Dividend Allowance

Dividend allowance refers to a certain amount of dividends that may otherwise be taxed as an income. To be precise, it is tax exemption for up to a certain amount of dividend income. Dividend tax allowance policy in the UK came into effect in April 2016 to replace the previous dividend tax credit. Each taxpayer in the UK who gets dividend income is entitled to this tax exemption. This exemption is not in any way dependent on the amount of non-dividend income you get. Worthy noting is the fact that your first £5,000 dividends from stocks and shares is not taxed. This simply means that you can be exempted from paying tax on up to £10,000 per year as a couple.

iv) Claim Expenses

Claiming expenses helps you to lower your tax bill if you are either a private landlord or a self-employed individual with small businesses. In this case, you have the liberty to deduct expenses from your income before paying tax. While your expenses as a self-employed income earner may include office service, stationery, equipment repair and car services; mortgage interests and property maintenance may constitute part of your expenses as a private landlord.

Saving tax may prove crucial if you are to reduce your annual expenses and maximise your income. Whether you run big or small businesses, or you are an employee, getting it right at all times is of paramount importance. It is therefore safe to take full advantage of these tax saving tips and apply them to the a tee. Additionally, professionals like tax accountants are handy when you are in need tax saving information- make use of them too.