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Tax Incentives for Small Business Investors (EIS, SEIS, VCT)
At 2E we frequently meet with new clients who are just starting up a small business. Whether it’s a restaurant, design label or a crowdfunded tech startup, small businesses are often perceived as high risk ventures, and those just starting out may experience difficulty in attracting funding. In recent years the HMRC introduced several initiatives…
6 Common errors made on Flat-rate scheme VAT returns
Since VAT return figures under Flat-rate scheme is worked out different to the standard VAT scheme based return, many people make mistakes on their return. HMRC has listed the following common errors on their website. 1) the 1% reduction is applied by businesses that have been registered for more than 12 months When you registered…
Working from home expenses: Limited companies.
If you run your own business from home, HMRC allows you to claim tax relief for some of your home expenses, as long as you use a “reasonable” method to calculate the amount. The Chief Accountant from Freeagent, Emily, outlines the method she uses to calculate business use of home expenses. Check out the infographic…
Small Businesses: A Basic Guide to Cash-flow
Cash-flow can be defined in terms of the total amount of money that is transferred out and into a business. Cash-flow can be a problematic issue, especially in the case of seasonal businesses. The tough period between invoicing and actual payment is felt by almost all small businesses. However, if careful attention is paid to…
Payroll Mistakes: How do they affect your business?
Erroneous payroll calculations not only affect your employees’ payments, but they also seriously affect the employer and the business itself. This issue becomes even more serious when it comes down to tax deductions. Whether your business is large or small, its reputation will take the worst hit in such negative circumstances. And negative publicity is…
National insurance for self employed business
As a self-employed, it is important for you to be informed and to keep track of the contributions you have to pay, so let’s see what types of National Insurances you have to pay and how to calculate the rates. If you are self-employed you have to pay two types of National Insurance: class 2…
Benefit of limited company vs being self employed
If you are starting a business, first you need to decide what kind of legal structure you should work under. Deciding whether to work on your own or start a limited company can impact the amount of taxes, but can also influence the way you manage your business and the personal liability you face. You…
Accounting Treatment for Bitcoin transactions
One of the best definition of money is ‘Money is what money does’. Bitcoin, a digital currency, is gradually making its mark as ‘money’ in our modern world. On 3rd Mar 2014, HMRC issued a brief 09/14 on the treatment of Bitcoin for tax purposes. http://www.hmrc.gov.uk/briefs/vat/brief0914.htm There seems to be temporary good news for Bitcoin…
Online bookkeeping support for tech startups
Although starting up a new tech company can be very rewarding, it can also involve a lot of hard work. If you have a limited budget, it is likely that you will be trying to handle as many operations yourself as possible. Unfortunately this can sometimes mean that areas of your business suffer. An…
An Accountant's Poem
I recently came across a poem in one of Mark Lee’s regular newsletters. Mark tells me it was written by Chartered Accountant David Marston in 1998. It’s still very true. Enjoy! Spare a thought for your accountant Spare a thought for your accountant He’s trying to do his best To earn a decent living Just like all the rest Doing…