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.

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.

Get a Quote Now

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.

Get a Quote Now

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.

Get a Quote Now

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.

 

Get a Quote Now

 

Do I Need to File a Returns if I’m Paid PAYE?

If you happen to be earning more than 100,000, you are classified as a high earner and the HMRC will be looking very closely at your money. Most high earners have more complexities in tax returns due to having more than one source of income. This calls for annual filing of self-assessment tax returns, which will ensure that all income is accounted for.

HMRC will also require that high earners file their returns since it can impact how much of your Personal Allowance will be tax-free. In HMRC language, this is what is referred to as the “adjusted net income”. The figure does not take into consideration Personal Allowance though it will comprise several types of tax relief. It boils down to a loss of 1 of tax-free Personal Allowance for each 2 over 100,000 of the adjusted net earnings. Things can get complex, which is why the HMRC requires that you file a tax return to make everything clear.

Can Submitting a Tax Return Result in Double Taxation?

You do not have to worry about double taxation as the HMRC will not tax the same income twice. However, it is easy to get it wrong if you are unfamiliar with the Self-Assessment system. There are many tax return deadlines and rules that come with Self-Assessment. You will have to register for it and you are likely to pile up penalties if you make mistakes in your filings.

Even if you somehow don’t fall into the pitfalls of Self-Assessment, you could still find that you are paying more tax than you should. Depending on the situation, you might get tax breaks on allowances that might be applied to the taxable income. Most people do not know how much they can claim for or may try to claim more too much.

What Information do the Tax Authorities Need?
HMRC will need a detailed accounting of all your income and expenses. This will include information about earning sources such as share dividends, employment, pensions and interest among others. The authorities will also expect that you declare all employment benefits. The tax authorities will also expect that you declare your allowable expenses too. It can take some getting used to and dropping the ball is more common than you may think. Contact GM If you need any advice or help.

1. Deadlines
2. Directors
3. Penalties
4. Claiming expenses
5. Common mistakes

Will you help with my Tax Returns?

Absolutely! As some of the best tax specialists in the UK, GM Professional accountants provide Self-Assessment tax return services that will be excellent if you have complex tax circumstances. We will take it off your hands and work on your total taxable earnings and then file the returns for you. Our experienced tax experts will ensure you are in compliance with the HMRC regulations and save you money while at it. Contact us and learn how we can help you with your returns.

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.

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.

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.

Contact us now

 

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.

 

Get a Quote Now

 

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.

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

How To Obtain A Free Valuation For Your Property

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

Contact Estate Agents

 

Free house valuation

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

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

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

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

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

 

How to get a ballpark valuation

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

a) Using price multiples

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

Comparison

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

b) Bring in professionals

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

Can making repairs increase the value of the house?

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

Considering Capital Gains tax on your property

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

Conclusion

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

Contact Estate Agents

benefits of outsourcing payroll services in London

Outsourcing payroll services in London

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

Outsourcing payroll services in London

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

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

Payroll providers in London

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

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

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

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

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

Best payroll providers

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

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

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

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

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

Payroll providers for a small business

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

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

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

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

GM Professional Accountants  are small business accountants based in London

How to Find an Accountant in Your Area

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

 

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

 

Before starting your search…

 

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

Tax preparation services in London

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

 

Finding the right accountant

 

 

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

 

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

 

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

 

Beware of frauds!

 

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

 

How to find Accountants near me

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

 

HMRC Tax Investigation Accountants

Accountants near Ilford

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

 


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

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

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

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

GM professional accountants based in London and Essex.

Allowable self employed expenses

Allowable business expenses

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

Office Costs

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

Stationary Costs

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

Transport

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

Clothes

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

Employee Expenses

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

Reselling Items

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

Legal and Financial

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

Marketing Costs

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

Common Tax return questions

Common Tax return questions

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

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

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

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

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

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

7) What is the annual return?

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

8) What is a short tax return?

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

The benefits of being self employed

Benefits of being self employed

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

Freedom of being self employed

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

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

No more time trading

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

Control Over Everything

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

 

GM Professional accountants  provide self employed self assessment tax services

How a hard brexit will affect businesses and indiviuals

How Brexit will affect Small businesses

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

How will it affect small businesses?

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

How will it affect the self employed

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

 

GM professional accountants are specialists in small business accounting services.

Setting up a limited company in the uk

Setting up a limited company

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

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

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

How to register as self employed in the UK

Registering for self employed and receiving a UTR number

Deciding to be self-employed can be a hugely important step, and it is one that many people will look on as the best decision they made in their careers. So you right now may be a ball of emotions, your ideas and plans must seem very exciting! This enthusiasm is great, and will serve your business well.
Let’s just come down to earth for one second and talk about the first step you need to take in your self-employment journey. You will firstly need to register for self-employment. What does this mean? How can you do it? What things should you keep in mind?
Right now, there might seem like a million and one things you need to sort out, but it is very important that you sort out your legal and tax issues first, then get on with the rest. Let’s guide you through it step by step.
What are you?
Don’t worry, this isn’t a philosophical question about your existence. It is, however an important question to ask yourself with regards to your legal status. Since you are now responsible for many more things such as business debts, expenses, potentially employees, you will need to answer this question.
With your business, there may be different classifications as to which legal term fits you best. Sole trader, partnership, limited liability partnership, etc. Look in to these different definitions, and decide what will work for you.
We are going to talk mostly about being a “sole trader” as this will fit most people.
First Steps
You will need to go to the HMRC website. to register as self employed. Go to this site and follow the instructions. The term used for self-employment on the site is “self-assessment” this basically means that you are going to asses your own taxes once per year.
1) You may already have a “government gateway” account, and if this is the case you can start registering straight away. If you don’t have an account, then you will need to fill out your address, and in 10 days you will receive an activation code to your new government gateway account.
2) Using your new government gateway account you can now begin the process to register as self-employed UTR number . For this, you will need your national insurance number on hand, and all your usual personal info.
3) The site will present you with a form to fill in. It doesn’t take long, and is just your personal info, national insurance number, address, DOB etc. After filling this in, you will receive confirmation in the post after a couple of weeks.

National Insurance and details

– Something that you will automatically be registered for when you sign up as self-employed is national insurance contributions. You will be paying Class 2 national insurance automatically. This is just a few pounds per week, and is compulsory. There is more to national insurance, read about it here. https://www.gov.uk/national-insurance/how-much-you-pay
– Do you need to register for a VAT number? Only if your earnings are going to be more than £83,000 per year. You can do this later if you see this happening.
– If you are in the construction sector and work as a contractor, you will need to registers for a CIS (Construction Industry Scheme) also. Read about that here. https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/overview
What Next
Registering for self-employment is very easy. Following the above instructions will lead you the right way. Don’t forget that once per year, you now have the responsibility to submit your tax return through the government gateway.
Keep good records of your income and expenses, and your self-employed journey will be a very enjoyable and successful one.
Now that you have gotten all the paperwork out of the way, you are free to work on your business, worry free!

Made the decision to be Self-employed and need an accountant?

You’ve just taken one of the most important steps in your career, you have completed the Self employed registration form and become self-employed! HMRC has been notified, and you are now your own boss. You feel great. It is now time to sit down and think about exactly what you need to make a huge success of this.

What are your new responsibilities?

You have your business plan, your clients and your vision, but what about the details that you are now responsible for? Well, if you were previously in an employed position, then you know that your employer took care of administration. This included your taxes. Now you are self-employed, the responsibility lies with you.
This is the part of self-employment that doesn’t fill most people with enthusiasm. It can be an added burden considering that you are busy running your business. It is for this reason that many self-employed individuals decide to hire an accountant to assist them. Ask yourself, “would an accountant benefit my business?”. Let’s have a look at a few ways that people have benefited from an accountant guiding them through their self assessment.

Remembering everything

In 2015 890,000 people in the UK failed to turn in their tax return on time. If this is your situation, it can result in a fine from HMRC. Remember, not filing your self assessment return is illegal. You are also required to ensure you keep good records of your business dealings. HMRC have the right to ask you about something from several years ago. Failure to produce the correct record may result in a fine. This isn’t written with the intention of scaring you, it is just attempting to highlight what HMRC expect from the self-employed. It is for this reason that recruiting the help of an accountant can be a good idea. They will know exactly what is needed from HMRC, they will make sure everything is submitted on time, and correctly. It can save you plenty of time. This leaves you with a clear head, to run your business.

Pay Less Tax

Accountants are essentially experts on tax law. The result of hiring an accountant, can many times mean you pay less tax. This is not suggesting that you should get an accountant to weave some complex web of offshore companies. It is however a sound business decision to ensure that you don’t pay unnecessary amounts of tax on your income. Are you completely aware of all the allowable expenses that can apply to your tax return? If you look them up, they may surprise you. Equipment, mileage, and many other things can be claimed as expenses from the tax man. You could do some in depth research into exactly what you can and can’t deduct. Doing so, however, will reduce the amount of time you can commit to your business. An accountant will be able to remove this rather large workload from your shoulders, and make you “tax efficient”. They essentially are in the know of how much to claim for self employed people.

What about the costs of an accountant?

Now, let’s get down to brass tacks (not tax). An accountant will not work for free, it is going to cost you money. However, let’s look at the benefits against the cost. Firstly, we have discussed that often you will be paying less tax if an accountant does your tax return. Secondly, it will also make it so that you aren’t paying any fines to HMRC from late or wrong paperwork on your part. Thirdly, you will be able to focus more time and energy into, for instance gaining more clients, or improving your website. You want to use that extra time to improve your business. The argument can be made that hiring an accountant is a good business choice. The best part of it all is that the accountants fees can be claimed from your tax bill!
Unfortunately, there doesn’t exist some giant tax calculator that can magically solve all tax problems. The alternative is investing in an accountant. This will help your business to function smoothly. So why not think about looking for an accountant that suits your needs? Often, accountants have good business knowledge. This means that in the long run, they can be more than just someone who helps you with tax. Accountants can often become trusted business confidants, so.
Hope that this article has helped you gain insight into your taxes. And of course, food luck with your self-employment!

HMRC LAUNCHES NEW WORLDWIDE DISCLOSURE

Introduction

Launched on 5th September 2016, Worldwide Disclosure Facility (WDF) relates to offshore interests. This is interlinked with the Common Reporting Standard (CRS) which automatically gives bank information and registers of beneficial ownership around the world.

Through WDF, HMRC will now have full ammunition in investigating those individuals who don’t use voluntary disclosure opportunity. This will see closure of all available closure opportunities such as Liechtenstein Disclosure Facility (LDF).

With up to 300% maximum penalty for defaulters, WDF is considered as the last chance before tough penalties and sanctions are applied. This sanctions include criminal investigation , naming and shaming.’

Who can use WDF?

WDF is available for anyone who is willing to disclose a UK tax liability relating to offshore issues. These includes:

· All income obtain from a business or asset outside the UK boundaries.

· All activities carried outside the UK territory.

· Assets outside the UK boundary

· Anything with the same effect as income, activities or assets as described above.

· Funds connected to unpaid UK tax not included in the above but has been transferred outside the UK boundaries.

The facility does not only apply to UK residents. Anybody who is not in UK is able to make disclosure if they are eligible to the above criteria.

Registration

One is required to notify HMRC using its Digital Disclosure Service with the following information.

· Name

· Address

· Date of birth

· Unique Tax Reference

· National Insurance Number and

· Details of references

· It is advisable to give extra information as HMRC uses it to check for accuracy.

After disclosing the above details, one is given 90 days to:

· Get all required information needed in filling the disclosure.

· Calculate tax, duty, penalties and interest liabilities

· Use the Unique reference number obtained after notifying them to fill in the disclosure.

Terms and conditions for WDF

The terms for WDF include

· Be eligible.

· Be able to make full disclosure of all previously undisclosed tax liabilities.

· Be able to calculate interest and penalties based on the applicable law.

If one fails to make an accurate or complete disclosure or decides not to send additional required information, HMRC is allowed to:

· Open an investigation and file a case in a court of law and open a criminal prosecution.

· Publish your details in their website.

· Apply a much higher penalty than it could be the case if the disclosure was voluntary.

Terms and facility limits

This facility is only applicable for issues on assets, activities and income outside the United Kingdom territory. One is able to fill disclosure for onshore liabilities with a much lower penalty.

The facility is also limited to liabilities of a period of not more than one year before filling the disclosure.

How to notify HMRC

As soon as you are aware of the disclosure facility, notify HMRC that you intend to make disclosure. This is done through their Digital Disclosure Service on their website.

After that, HRRC will notify you through an email your unique DRN that use will use for the disclosure process and a payment reference number (PRN) that you will use to make payments.

Completing the Disclosure

After notifying HMRC your intention to make disclosure, you will be given 90 days to make your offshore liability disclosure. You will be provided with details on how and when to make payments.

If you are not able to make the required payments, you will be required to sign a payment agreement and submitting it to HMRC before making disclosure.

You will be require to fill the HMRC disclosure service form available at the HMRC website.

Penalty

After calculating you offshore liabilities depending on the disclosure categories, the penalty will be applicable depending on:

· Inaccuracy in returns and document factsheet.

· Failure to notify.

Higher penalties will be applicable under the following conditions:

· Whether you are under investigation by HMRC.

· You are not following the current laws on penalty calculation.

· Your disclosure is connected on a previous inaccurate disclosure.

Conclusion

WDF is not only targeting notorious tax evaders. The facility apply to anybody, unknowingly or through ignorance. It is therefore advisable to keep up with the latest HMRC development and make timely and faithful offshore liabilities disclosure. You can contact them to discuss specific circumstances and disclosure requirements.

Register as self employed to day with GM professional Accountants. we specialise in self assessment tax returns and we are in the heart of London.

 

 

 

Travel and Subsistence

Travel and Subsistence

The government has approved that the changes will go ahead to prevent contractors from attaining tax relief on the costs on travel to work. This is including the cost of accommodation related to the travel or the cost of the contractors’ meals.

The change of travel and subsistence was declared earlier this year, at the time the decision was being made the government was considering to include everyone who worked via a PSC (personal service company).

We now know that the changes for Travel and Subsistence will not affect personal service company contractors, unless the contract is caught by IR35, the anti-avoidance rules. This means the contractor was registered as self-employed and worked as individuals rather than using a personal service company, he can then continue to obtain tax relief on travel and subsistence.

Though, this is not the end of the story. Changes to the anti-avoidance rules (IR35) are also likely, following a review  by the Office of Tax Simplification. Any changes are likely to tighten the current rules and make it easier for HMRC to police and enforce.

Accounting and tax services in London

Does IR35 Apply to Your Taxes?

Every year, you need to make sure you have all of your financial details in order so that either you or your accountants can complete your taxes. If you are wondering about which tax rules and regulations may apply to you, it is important to consider all aspects of your financial portfolio. Considering what work you do, who you do it for or with, how you get paid, and what types of supplies you need for your job are all important questions that will help you fill out your taxes more easily.

 

As mentioned above, how you get paid can greatly impact your taxes. If you are paid via an intermediary, then the UK tax legislation called IR35 comes into effect. This specific legislation will tax what it deems “disguised employment.” The designation of disguised employment means any work that you do where you get paid through an intermediary. This also means that the intermediary will need to have been paid directly by the client, just like a normal employee would. This type of compensation chain makes the IR35 tax designation come into effect.

 

This IR35 will the tax any employment you do where you receive payment through an intermediary. The rate that this income will be tax at depends on the rates that similar employment forms are taxed. The type of work you do for the intermediary will be assessed to see what the rate should be to tax your intermediary-paid income. This tax act was developed in 2010 in order to ensure that citizens receiving payment in this manner were paying the correct amount of taxes. It helps to avoid the previously common practice of workers splitting ownership of companies with their relatives to avoid paying the tax at the level they should have owed.

 

IR35 is also impacted by direction, supervision, and control. Some instances where IR35 will apply are if you work in construction, if you are an office-holder (a special designation that has a great deal more information attached to it), or if you happen to work with your partner. IR35 also applies if either your intermediary or your clients live abroad. Finally, if you are working for a charitable organisation through an intermediary, it is important to know that IR35 will not apply, that is as long as you work for this charitable client through a Managed Service Company or through an agency.

 

In the event that you do get paid through an intermediary, you will need to follow these IR35 rules and claim the income you receive on your taxes. One of the easiest ways to make sure that the IR35 legislation applies to you, and to make sure that you are paying the correct amount in taxes is to enlist the help of an expert accountant. A licensed accountant will be well aware of this legislation, and will be prepared to help you figure out just what it will mean for your individual tax situation. While it may seem complex, accountants will simplify the process, giving you the peace of mind knowing you have filed your taxes correctly.

 

It is helpful to know what HMRC is and to know where your taxes are going. HMRC is the authority that the United Kingdom has established to be put in charge of any tax, payment, or customs related work that goes on within the UK. The money that the HMRC collects goes to a variety of purposes, at the discretion of the government. The basic fund go to public services that keep the countries within the UK running. Additionally, money collected for these purposes can be given to individuals who are identified as needing financial support.

GM professional accountants are  known as specialist contractor accountants in London.

Effect of Brexit on Small Business

Brexit only happened a few short months ago when the United Kingdom decided to leave the European Union, and small businesses are just now starting to see the effects. When big moves happen in any country’s government, the effects will trickle down to citizens through the economy which is usually more damaging for those that have a small business. Brexit, since it happened so recently, has not shown a substantial difference in most small businesses, but you should know what to expect in the future.

Know Your Present and Future Risks

Now that Brexit has happened you should expect that this is going to change the shape of your company whether this is marginally or on a larger scale. The biggest issues that businesses have complained about are the difference in tax on some goods. Some transactions will require additional fees that were previously free or reduced. The biggest thing to remember is that everything is in a period of transition and although it’s different it doesn’t necessarily mean that it’s bad.
International Business Problems
Currently, most small businesses are not experiencing much difficulty continuing with their international accounts. Experts do state that it could take up to two years before owners see the effects of this change on their revenue. Exchange rates are fluid and change all of the time, so this is just another aspect of business operations that owners should understand. However, it is stated that smaller companies should be prepared to buy higher shipping fees because their volume is lower than larger competitors.
Uncertainty of the Future
Many small businesses were completely unprepared for the finalization of the Brexit vote. This is only the first step into unchartered waters where businesses have never headed before. The most efficient way to survive this change is to be easily adaptable so that you can easily transition and survive.
Future Economic Issues
Most small business owners are successful because they can accurately access their day to day risks and know how to handle their revenue appropriately. With the introduction of Brexit, businesses no longer have anything to gauge their future against because the economy has changed. There are many ways that you can survive this change with minimal loss by being even more conservative in your business practices. Make sure that you have a little bit of overhead in your accounts so that you prepare for unexpected costs.
Best Steps to Take After Brexit
The biggest thing to remember is that panicking isn’t going to be useful in any situation and that this situation will pass and be in the history before you know it. It may seem like a good idea to overreact with your finances, but it’s better just to wait awhile before making any big moves. However, there are a few things that you can do to make sure that small businesses are protected better from Brexit fallout. Make sure that you build up some cash to have in reserve. You should also pay attention to all of your clients and their locations so that you can decide which relationships might change. Then, at the end of the day, focus on your customer service because your small business will continue to thrive long after Brexit has left the headlines.

GM professional accountants are small business accountants based in London.