Should I form a limited company?

We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. 
As well as the obvious issues of tax and national insurance contributions (NICs), there are many other potentially relevant factors.

Click here to read more about  the advantages & disadvantages of a limited company. 

Find out about the most common types of businesses: sole traders, limited companies and partnerships

If my rental expenses exceed my rents do I have to declare anything to the HMRC?

Yes. It is a common misconception that if the expenses cover the rents you receive, you do not have to tell H M Revenue & Customs about them. This is not the case, failure to do so can result in penalties being charged. 

What happens if I fail to declare all my income?

It is likely that a fine will be charged in addition to you having to pay any tax due when HMRC discover you have not declared all your income.

When do I have to charge VAT?

You do not need to charge VAT on any of your goods or services you supply until you have reached the VAT threshold. If your turnover exceeds the current turnover limit then you must register for VAT, but you can voluntarily register even if your annual  turnover is smaller. Click here for details of the current annual turnover limits.

What details are required on a limited company's letterhead?

The full company name, registered number, registered office address and place of registration (e.g. registered in England and Wales) must be shown on all business letters and order forms.

How Long do I keep my records for?

Self employed and partnerships – 6 years from the end of the tax year (ie 5th April) in which their year end falls. 
Companies – 6 years from the end of the accounting period. 
Individuals not in business – 1 year from the 31 January following the tax year.

How to pay the Taxman

One of  the most frequently asked question  is ‘How do I pay my tax bill?

The the Institute of Chartered Accountants have come up with a guide, PAYING TAX TO HMRC which covers everything from sending a cheque to paying over the telephone and even setting up direct debits.  It also gives details of the steps you can take if you are  in financial difficulties and unable to meet the payment deadlines.

How do I pay my PAYE or Class 1A National Insurance?

Click here to find out how to pay your PAYE or Class 1A National Insurance

What are the advantages of Cloud Accounting? 

  • No more updating programs on your computer - this is all done for you.
  • Your sales invoices are all saved in the cloud and you can even upload your purchase invoices.
  • All your documents are in one place, and you can access them from anywhere.
  • You are working on real time data not historical.

How long do I have to register with HM Revenue and Customs once I’ve started trading?

You must notify them within 3 months to avoid a  penalty. If you’re approaching this deadline then contact us and we can deal with informing HMRC for you.

If I want Usher Spiby to act for me, what details do you need from me?

  • Full name & proof of id (Passport or Driving Licence)
  • Date of birth
  • Current address & proof of your address
  • Previous address (If lived at current address less than 3 years)
  • Home  telephone  & mobile number
  • Your NI number
  • Your UTR number (if applicable)
  • Company Name & a number (if applicable)
  • VAT registration number (if applicable)
  • Copy of last accounts/tax return (if applicable)

Do I have to keep books and records?

Yes, there is a fine of up to £1000 for failure to keep good accounting records. Therefore it is important to keep your book keeping up to date.

How much tax will  I pay?

The amount of tax you pay will depend on your individual circumstances, the other type of income or gains you have and any tax reliefs which you can claim.
Please contact us if you need help in working out your tax position.

Whats involved in changing accountants?

The process is straightforward and  we will deal with it for you.
We will write to your old accountants to arrange for transfer of all required information and documentation.
We will send you an engagement letter confirming the areas and terms under which we are to act for you.  

I am taking someone on - what do I have to do?

Click Here to view the HMRC guide for taking on employeeor contact us if you would like us to deal with your payroll.

The above answers are provided for guidance only and may not cover your own cumstances. It is important that you seek  appropriate professional advice which takes into account your own circumstances.