Declaring dividends
Declaring Dividends? Dividend payments are a common way for business owners of limited companies in the UK to extract profits. However, understanding how much can be withdrawn without incurring unnecessary tax liabilities or breaking any rules is crucial. Legal Requirements Sufficient Profits: Dividends can only be paid from post-tax profits. Drawing dividends that exceed this […]
How to manage employee expenses
How to manage employee expenses What are employee expenses? Employee expenses are costs incurred by employees that are reimbursed by the employer. Often these costs are incurred when it is not practical for the employer to pay. As an employer you should make sure that you have a good employee expenses policy in place. […]
Limited company annual accounts: everything you need to know
Taking care of your annual accounts can seem like a confusing process. It’s the reason why most limited companies will choose to work with a professional accountancy service to ensure they’re compliant. To makes things a little simpler, here’s a quick guide to limited company annual accounts. What are annual accounts? A limited company […]
Do sole traders have to produce annual accounts?
Sole traders are the most common type of self-employed person. It’s easy to set yourself up as a sole trader with no founding legal documents or other agreements required. All you have to do is inform the HMRC you are trading before you begin. The legal and taxation requirements on sole traders are deliberately simple […]
How to keep your annual accounts costs low
Taking care of your annual accounts is an essential part of running a business. Whether you have an in-house accounting team, take care of your accounts yourself or use professional accountancy services, it’s crucial that you get them right. Annual accounts not only help your meet your statutory objectives but also provide valuable information about […]
How to use the VAT annual accounting scheme for your business
All businesses, whether sole traders, partnerships or limited companies, are required to register for VAT when their annual turnover reaches the VAT threshold. This is currently £85,000. Many businesses will choose to register for business and commercial reasons, such as increased cashflow, prior to reaching this threshold. Once registered, businesses have to abide by a […]
What is employment allowance?
Employment allowance is something every business with employees contributing National Insurance should be aware of. With employment allowance liable to change in any given year, companies should be keeping abreast of it – or at the very least, enlisting the help of a chartered accountant who can do on their behalf.
Year-end accounts: What to expect and how to prepare
Year-end accounts can easily present a nightmare for companies when the time comes. Not only is it easy to get them wrong, but there is the threat of fines for mistakes and late payments. With something so important only coming around once a year, year-end accounts are easily forgotten and the process can become rushed […]
Paying a dividend from a private company
If your private limited company has had a successful year in terms of profits, you may want to pay a dividend to shareholders. This is a standard way of rewarding them, or else paying yourself if you are the sole shareholder of the company. Paying a dividend from a private company is not something that […]
How Much Corporation Tax Should I Pay?
Corporation tax applied to trading profits and sold assets, and the time periods in which applicable companies must pay their bill are stringently enforced. Knowing how to calculate corporation tax is an essential element in an accountant’s toolkit, but business owners and company directors can also benefit from knowledge of how corporation tax works. If […]