Question: What will you charge me?

Answer: We charge for hte time taken to carry out the work required. This obviously depends on the type of work undertaken and the quality of the records you keep. As a guide; Basic tax returns for someone in employment or, retired start from around £40.

Self Employed accounts, plus Tax return start at around £100 per annum.

Contact Barry for a quote covering your personal requirements.

Question: Should I be registered for VAT?

Answer: If your taxable business supplies have exceeded the VAT registration limit in force in a period of 12 months or less then you will be obliged to register for VAT. The current limit is included on our Tax Guide page. The exact timing for registration can be quite complex and you should seek our expert advice on the subject.

Question: I own my own company. Should I have a company car?

Answer: This question needs careful consideration of the full facts and depends on personal circumstances. With the new Co2 Emission regime coming into force in 2002/2003 it may be more cost effective to own the car privately and charge the company for business miles undertaken. We can review the position for you on our dedicated software package.

Question: How much can I earn before paying Tax?

Answer: Every individual has a “personal allowance” each tax year providing a threshold under which no tax is paid. The current allowance is detailed in the Tax Guide page.

Question: As an employer, how much can I pay someone before deducting Tax and National Insurance?

Answer: At present the the limit at which employee National Insurance Contributions commence is below the Tax threshold. It currently stands at £75.99 per week. If the Employee has no other work then Tax will be introduced at £84 per week.

Question: How should I finance the purchase of my next vehicle?

Answer: Nowadays there are many different options in the market for acquiring a vehicle. These include Hire Purchase, Contract Hire etc. In simple terms you want the deal that costs you less. Any decision will involve a specific review of interest charges, tax treatment and estimated residual values amongst others. We can guide you through the decision in a logical fashion but the final decision will depend on the specific terms of the deals on offer.

Question: How long should I keep my business records?

Answer: Records should be kept for a minimum of 6 years for Inland Revenue purposes. A VAT Inspector will usually only go back over 3 years when undertaking a routine inspection.

Question: At what level of income will I pay higher rate Tax?

Answer: The level is shown on our Tax Guide page. Remember that you must include all income and taxable benefits and that this will be reduced by your Personal Allowance and any relief’s due.

Question: At what rate is Corporation Tax payable?

Answer: This will depend on the level of profits being made. The different rates are shown on our Tax Guide page.

Question: Should I trade through a Limited Company?

Answer: Trading through a Limited Company has advantages and disadvantages and the best trading style will depend on your specific circumstances. Some advantages include:

  • Limited liability status if the business fails.
  • A potential Tax shelter from Higher rate Tax.
  • The perception of being a larger business.
  • Better for succession planning.
  • N.I. savings could be made by paying dividends.

Some disadvantages include:

  • The N.I. costs can be large if dividends are not appropriate.
  • Certain expenses may not be allowable.
  • The Administration costs could be higher.

Question: Does my company need an Audit?

Answer: For company year ends falling after the 23rd July 2000 where turnover is below 1 million pounds an audit may not be required. The company must meet certain other criteria and this should be clarified first.

Question: When do I pay my Tax?

Answer: Individuals who are self employed will pay income tax under the self assessment regime. The payment dates fall on 31st January and 31st July each year. The amounts paid can represent both a balancing payment of the previous years tax and a payment on account for the current year.

Most limited companies pay their Corporation Tax 9 months after the company year end. “Large” companies are now required to make “quarterly” payments on account. A company is “large” if it pays corporation tax at the full rate.

Question: When does my self-assessment return need to be submitted?

Answer: A self assessment return must be submitted by 31st January following the fiscal year end (5th April) to which it relates to avoid an automatic filing penalty of £100. If you want the Revenue to undertake the calculation of tax the return must be in by 30th September following the fiscal year end.