FAQs

That is up to you, provided the funds are available, though they recommend taking a reasonable level to meet day-to-day needs and at least a National Minimum Wage salary. They then provide a monthly payslip showing how much to pay yourself. You may also take some salary as dividends from remaining profit.

Dividends are a distribution of company profits after tax to shareholders. The page says no National Insurance is payable on dividend payments, making them a tax-efficient way of receiving income from the company.

Log mileage throughout the month, keep receipts for fuel and other claimable expenses, and include them in the monthly report. They then advise how much to reimburse yourself from the company bank account.

You can claim anything wholly and exclusively incurred for the day-to-day running of the business. Examples given include business travel, insurance, accountancy fees, motor expenses, hardware, software, telephone, stationery, home office, and training.

The flat rate scheme simplifies VAT by having you pay HMRC a flat-rate percentage on gross sales including normal VAT. Percentages vary by business activity. You generally cannot reclaim VAT on purchases and expenses, except on larger capital equipment purchases over £2,000. Once you leave the scheme, you cannot re-enter for 12 months.

VAT is payable four times a year, one month after each quarter end. They calculate the VAT, advise how much to pay and to whom, and submit the VAT return each quarter on the client’s behalf.

A self assessment is a set of forms used to bring together an individual’s taxable income and gains during a tax year in order to calculate the correct tax liability for that period.

No. We do not charge by the hour. Clients pay a set monthly fee, which includes all services, and can contact their accountant during working hours.

You can make the company dormant, though you still need to file annual accounts with Companies House. Their fees reduce to £30 + VAT per month to continue assisting while the company is dormant.

Benefits listed include claiming travelling and accommodation expenses when working away from home, benefiting from the VAT Flat Rate Scheme, and receiving interest on funds held within your company. It also notes that other contract work can still be put through the limited company.

This depends on when all relevant reports are submitted. They state they will prepare everything in time for deadlines and give plenty of notice of Corporation Tax liabilities.

IR35 affects how tax is paid through a limited company. Outside IR35, you can set a salary and take the remaining money as profit or expenses, with dividends paid after tax. Inside IR35, salary payments under PAYE are calculated at 95% of the income the business receives, meaning less money is received than outside IR35.

Yes, we offer this for an additional one-off cost of £150 +VAT.

No, there are no hidden costs.

Once we have received the completed registration form, the account will be open and ready to use within 24 hours from receipt of the application form and ID, though in most cases registration is completed by close of business on the same day.

They are required to request ID and proof of address for money laundering purposes.

Yes, this is included in both the Simple Package and the Simple Plus Package.

The company may provide a company car and fuel for personal use, but this creates a taxable benefit in kind based on the actual list price of the vehicle and a detailed formula. They can help decide whether it is better for the company to provide a car or for you to use a private car and reclaim mileage.

Corporation Tax is due to HMRC 9 months and 1 day after the year end. They advise clients of the amount payable based on the monthly reports submitted.

Under the normal VAT scheme, a company charges VAT at 20% and pays HMRC the VAT collected less the VAT paid on expenses. Under the Flat Rate Scheme, eligible businesses calculate their VAT liability as a flat-rate percentage of total turnover inclusive of VAT.

If you do not have many expenses going through the company monthly, you may benefit. You can still claim expenses, but the VAT on those expenses cannot be reclaimed.

Yes, if you choose to be VAT registered there are various options. A consultant can advise on these options, although the decision is ultimately yours. If turnover is above the VAT threshold, registration is mandatory.

They should be submitted in CSV or Excel format at the beginning of each month.

Yes, we would be happy to help friends or colleagues who need accountancy services. Refer a client and we will reduce your fees by 10% for 12 months.

IR35 concerns the way you work and whether it resembles employment or self-employment in practice. Status should be reviewed contract by contract to ensure compliance. The page adds that contract wording alone is not enough; working practices matter too.