I bought a suit for work, is it tax deductible?
Working wardrobes: is the shirt on your back tax-deductible? Tax on work clothes Many times, clients have asked me if the clothes they buy for work can be listed in their accounts and claimed for tax relief. It’s a reasonable question – clothes, after all, are an integral part of our lives and jobs, and…
Reasons Why Hiring an Accountant Can Benefit Your Start-Up Business
For many small businesses and start-ups, accountants are either perceived as a luxury, or as a mere tool meant to fill out those forms that keep HMRC happy. Nevertheless, good accountants will provide you with more than this. A good accountant can become a valuable ally, providing you with constant guidance and advice meant to…
The New Direct Recovery of Debts: Too Much Power?
This year, the government came up with a new DRD strategy, a scheme that would allow HMRC to directly access corporate and personal bank accounts and seize unpaid taxes without the need of court approvals. Despite the fact that similar schemes already exist in the U.S., Australia, or Sweden, the new scheme has made the…
The Mechanics of Statutory Audits
A brief definition of a statutory audit Statutory audits are specifically required by government agencies and do not affect all UK businesses. For example, brokerage companies, insurance companies, or banks usually require statutory audits. This is due to the fact that this type of businesses needs to meet specific financial regulations and be UK GAAP…
Tax Investigations: What You Should Expect
A brief definition of tax investigations As its very name suggests, a tax investigation can be defined in terms of an HMRC enquiry in your business’ taxes. These investigations are usually extremely complex and stressful procedures. Tax investigations are a serious matter and should not be taken lightly. If HMRC has notified you of a…
A Quick Definition of Abbreviated Accounts
If you are running a small limited company, it will be necessary for you to submit several reports to HMRC and Companies House. Which are the main reports required? Here is a brief list of the main reports you will have to submit and the information they should contain. Abbreviated Accounts If you run a…
The VAT Threshold: What Is It and How It Is Calculated
Countries around the globe have different VAT thresholds. Nonetheless, if your business is operating in the UK and your taxable sales volume exceeds the current £81,000 VAT registration threshold, you will more than likely have to register for VAT. Put simple, that means that if you are having sales that are subject to standard or…
What Is It Exactly That You Need to Know About Corporation Tax?
If you manage or own a limited company, then you definitely have to be familiar with what corporation tax implies. Since the rules for calculation are complex and regularly amended, we strongly recommend that you hire a qualified accountant to calculate and prepare your statutory accounts and corporation tax return. Nonetheless, we consider that understanding…
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…