Accounting Services
Accounting Services
There are a myriad of accounting services available. We specialist in those that may be required by a small owner managed business.
We can offer a full accounting package to include what you need on a day to day basis. Also, one off consultancy and irregular jobs such company formations and closure.
Our principle services are detailed separately, here are the details of our subsidiary services
We at Firestone Accountants are here to assist and guide you through the maze so your accounts may be accurate, compliant, understandable and comprehensively tell the story of your business all the while taking advantage of opportunities to keep your taxes low.
Company Formation Experts
Firestone Accountants are experts in Company Formation and offer practical advice about the different company structures that are available to you when setting up a new business.
What is the difference between a business and a company?
A business is run either by an individual or a group of people trading under a business name.
A company is a legal entity with an official name registered at Companies House.
Sole trader (self-employed)
As a sole trader your business is not separate from you personally which can put your personal finances and assets at risk, which is why we strongly encourage you to maintain separate bank accounts for business and personal. You can employ people but you will be solely and personally liable for any debt related to the business. There are no set up costs but you still need to register your business with HMRC and complete an annual Self-Assessment tax return.
Limited company
Setting up a Limited Company is straightforward and can be done quickly with little cost.
There are several types to consider and we can talk you through the pros and cons of each. One of the primary reasons for choosing this option is to protect yourself from personal liability in the event that your business goes into debt or if a claim is made against it. Another advantage is that as well as earning a PAYE salary, you can claim back certain business expenses and receive shareholder dividends if the business makes a profit. You will need to register and pay Corporation Tax on your business profits.
How do I set up?
Once you have decided which structure is best for you, we can guide you through the steps to get your business set up correctly.
- What and when do I need to register with HMRC?
- Do I need to register with anyone else?
- What are my tax obligations and when are they due?
- What type of bank account do I need?
- Which is the best Bookkeeping System for my business?
And if you choose a limited company then we can help with the following decisions: –
- What shall I call the company and are there any restrictions?
- Which address should I use as the ‘Registered Office’?
- Who shall I appoint as Company Directors to run the business?
- Do I need to appoint a Company Secretary and what is their role?
- Who are the Shareholders that own the company?
- How much share capital must they invest and how many shares should they have in return?
Call to arrange a free initial consultation to discover how to set up your business.
Payroll
It is almost inevitable, as your business grow’s, that you will need to hire staff to help you.
There’s no point in getting bogged down in the detail of payroll and employment tax law as we can expertly guide you through the process.
You must register with HMRC as an employer, even if you only employ yourself as a director of a limited company. You will also need to be aware of your legal responsibilities as an employer and understand what your employees are entitled to.
Understanding how to set up Pay As You Earn (PAYE) can be complicated as each employee may have a different tax code. This code is used to calculate how much tax to withhold from your employees, which will need to be paid on to HMRC in due course.
National Insurance (NI) contributions are a tax on earnings paid by employees AND employers. The rate varies and depends on your employees’ employment status, how much they earn and their age.
As part of your payroll, you will also need to be aware of the following compulsory elements:-
- minimum wage
- holiday and holiday pay rules
- workplace pension rules
- statutory payments e.g sick pay and maternity pay
- student loan repayments
- Construction Industry Scheme (CIS) deductions
Special rules apply to employer paid expenses and benefits too so you need to decide what to pay and the consequences: –
- tax free expenses & allowances
- taxable benefits e.g a company car
- tax free benefits e.g mobile phones
- insurance for accidents/sickness/death etc
The team at Firestone are here to advise you and answer any questions you may have about employing staff. We can either show you how to set up payroll and HMRC reporting systems that you can manage yourself or we can fully administer everything on your behalf.
VAT
Value Added Tax (VAT) is an indirect ‘spending’ tax paid by customers when they purchase goods/services from VAT registered suppliers/sellers. There are 3 tariffs but the standard rate of 20% applies to most things.
A business must register for VAT if they provide taxable goods and/or services and have a turnover that exceeds £85,000. Under certain circumstances, it can be advantageous for a business that falls below the VAT threshold to still opt to be VAT registered.
The VAT collected is then forwarded to HMRC, minus any VAT the business has incurred on goods or services purchased, for sale by or use in, the business.
The rules around VAT are complex but you need to know which VAT rate (20%/5%/0%) to charge on your products or services as these vary depending on how/what you are trading.
Who are your customers?
- sole traders or companies
- general public
- charities
Where are your customers located?
- UK, USA, Europe, Asia etc.
What do you sell?
- physical goods
- personal services
- digital downloads
- user licenses
- rights to use land/property
How do you sell your goods/services?
- hot/cold
- installed
- with support
- packaged
- bundled
- via an agent
- factory direct
We recommend that you talk to us when setting up your business to get the most benefits from your VAT registered status. If you are approaching the VAT threshold, we can advise you when is the optimum time to change your status and start to charge VAT.
As part of Making Tax Digital, all newly VAT registered businesses are required to keep digital records, submit VAT returns online direct from software and make electronic payments. As well as advising on how to handle VAT, we can help you to set up efficient online bookkeeping systems, create VAT invoices and prepare and submit your quarterly VAT returns digitally.
Personal Tax Returns
We advise on organisational and financial structure both to start-up’s and established companies. We also offer guidance on matters of compliance, drawing accounts, tax efficiency and the preparation of company and U.K. personal tax returns.
For our clients in the construction industry, we have in-depth knowledge of the Construction Industry Scheme (CIS) and off-payroll working rules of IR35.
Please get in touch to arrange a free appointment to discuss how we can help you to effectively manage your business finances.
- Self-employment income
- Joining a partnership
- Dividends in excess of £2,000
- Rental income
- Capital Gains (if proceeds exceed £40,000 or gain exceeds £12,000) (However, property gains may have to be reported within 30 days of sale)
Those who will usually be asked to prepare a return regularly are:-
- Sole Traders
- Rental Property owners
- Shareholders with dividend income over £10,000pa
- Those earning over £100,000
- Directors
Return Contents
- The tax return must report/confirm all income and capital gains for the year
- It may also be used to claim allowances or reliefs
- HMRC use it to calculate if the correct tax has been paid on income, also some other tax related payment e.g Student loans repayments and Child Benefit
Return Timetable
- 6th April or when advised – HMRC will issue a notice to complete a personal tax return for the tax year just ende
- 31st October following or 3 months after Notice – deadline for submitting return by post
- 31st January following – deadline for electronic submissions
- £100 initial penalty for late submission – rising by £10 per day from 1st May
Payment Timetable
- 31st January in year – 50% of last years personal tax bill as a payment on account
- 31st July following – 50% of last years personal tax bill as a payment on account
- 31st January following – Balance with interest charged on late payment
- 28th February and 28th August – 5% surcharge on unpaid tax
Please do contact us for advice and assistance in the preparation of your return
Consultancy
Consultancy does what is says on the tin. You can consult us about any business issues, for as long as you want chargeable per hour. This may be speculative ideas such as a new business or project, or just how to fix current problems with your bookkeeping systems.
We have 30 years of experience in helping small business and are very happy to be a sounding board or add our ideas and suggestions to solve your problems.
Being in business on your own can be very isolating and sometimes a friendly ear or a date in the diary to take action is all that is required and we are happy to be here and help you discuss options and formulate plans, however crazy they may at first appear.
As part of our role as accountants, we can advise on the advantages and disadvantages of each of the available tax options. We will discuss your personal objectives before evaluating the most efficient tax position to suit your individual circumstances, all the while ensuring that you keep tax compliant.
We at Firestone Accountants are here to assist and guide you through the maze so your accounts may be accurate, compliant, understandable and comprehensively tell the story of your business all the while taking advantage of opportunities to keep your taxes low.
