bookkeepers Peterborough

Making Tax Digital – Are you ready?

VAT Registered Business from April 2019

The clock is ticking as VAT Registered Business i.e. Turnover in excess of £85,000 will need to submit their returns via MTD Compliant Software. The HMRC online portal currently used will no longer operate.

Therefore, if you currently process your Accounts on a spreadsheet or similar software then log onto HMRC to submit a VAT Return you will be affected.

AK Bookkeeping use SAGE and XERO Software for our clients and this is compliant with the MTD requirements from April 2019. Give us a call to arrange a meeting to discuss how we can help at a price significantly less than most Accountants.

Companies, Sole Traders, Partnerships currently not registered for VAT

Business under £85,000 turnover or Sole traders such as Plumbers, Builders, Retailers who currently submit their accounts at the end of the year have until April 2020 to get ready. Again compliant MTD Software is required but submissions will be quarterly.

If you currently drop a bag of receipts to your Accountant at the end of each year then you will be breaking the law and liable to penalties if you fail to change to quarterly accounts.

A big issue is the cost that an Accountant may charge for doing your accounts 4 times a year instead of 1. You should therefore find out what it is likely to cost. Call us for a competitive quotation.

5 Compelling Reasons to Hire an Accountant for Your Tax Matters

Why you should engage a professional accountant.

Tax is complicated. Filing tax returns can prove to be a stressful and traumatic process when you’re not aware of the process and the laws and regulations that govern it. In most cases, owners of small and medium businesses don’t know much about tax. This creates a number of problems for the business and the owners.

There is a simple solution to these problems – hiring a professional accountant’s services. However, most business owners are reluctant to do that, mainly because they are unaware of the following advantages that an accountant offers:

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1. They Know the Laws and Regulations and They Comply

The HMRC has a detailed set of compliance requirements for all businesses and tax payers. Often new businesses are unfamiliar with them or the way to navigate them. The accountant knows the law. They know what HMRC wants and requires and what’s the best possible way to get that done to honour compliance and legal requirements. It’s their job. It’s what they do best, and as a result of their expertise you don’t have to worry about it  a moment longer.

2. Reduced Tax Liability

No, we are not referring to any sort of tax avoidance or tax evasion. A professional tax accountant can counsel you on tax efficient methods of business operations. This can allow you to save a considerable amount of money that is otherwise paid as tax to HMRC. With their expertise they can advise you on the most efficient use of tax incentives and business support schemes given your business’ current circumstances. They can help you understand the tax process better and save you money through that knowledge, too.

3. Tax Planning

Tax planning is important. It is this planning that allows a business to keep up with its tax obligations through efficient utilisation of the resources available to it. The accountant can help your business with proper tax planning. This may include making arrangements with the HMRC for deferred payments in times of difficulty or setting aside tax money for later payments when the cash flows are healthy.

4. You Know Exactly Where You Stand with the HMRC

When your taxes are being handled by an accountant, you can count on being up to date with your tax obligations. This includes payments, filings, refunds, and even accuracy. There are times when HMRC makes mistakes too. These mistakes might not be obvious to business owners, but accountants are trained to check for and organise the business’ taxes properly.

5. Saves Time

Tax isn’t easy to understand. Although HMRC provides comprehensive guides to help taxpayers understand the system – they are much too detailed for small business owners to spend a large amount of their time reading and understanding them. That time could be better spent on ironing out business plans and growth strategies instead; and that is possible when you have a professional tax accountant handling your tax affairs.

Whether it’s personal tax returns, tax calculations, submitting VAT returns or other business taxes, a professional accountant is your best bet for a worry-free solution.

For professional help, get in touch. If you found this information useful, let us know! Feel free to share it so others can benefit too.

We can offer you more guidance when you call Les’ Hotline:  07732090847, les@akbook-keeping.co.uk.

 

Launching a Start Up Business?

Launching a Start Up Business? Spare a Thought For These!

Is this the first time you’ve tried to set up your own business?

Whether the answer to that question is ‘YES’ or ‘NO’, there are certain things you need to know about start up businesses. The life of an entrepreneur is more or less like a roller coaster. There are highs and lows to it, but the best part is that it all comes with valuable lessons. Start up businesses that succeed – there aren’t many – are usually the ones that learn from their experiences.

Establishing a start up business in Huntingdon, Peterborough, or somewhere else in the UK is a not an impossible feat. The process is rather simple. However, before you get to the process of setting up a new business, there are a number of things you need to iron out and these include:

The Business Plan

There is a common misconception among amateur entrepreneurs that a business plan is only good for obtaining finance. While obtaining finance is one of the main objectives of drafting a business plan, it is not the only thing you need it for. You need to understand that starting a business requires a vision that ultimately converts into a series of goals your business sets out to achieve, but without the path that leads to these goals, how do you plan to accomplish them? It is easy to come up with an innovative business idea – however, unless you can execute the idea well you don’t stand a chance of succeeding. Your business plan is the execution strategy that maps out your route to achieving your goals.

The Focus

Having your focus on the right things is crucial. You can’t be operating a business in 2016 based on the market principles and business strategies you succeeded with back in the year 2000. Business environments and industry dynamics are forever evolving. You need to keep abreast with the latest developments and integrate them into the structure of your business to keep it focused and steady – and you need to do all this before starting the business. Focus on one industry, one market niche, and one product/service when you begin. Once you get a strong foothold in the market, there will be plenty chances to diversify!

The Anchors

A number of start-up businesses employ friends and family in key positions in the business. They’re the ones you trust most and there’s no harm in that. However, the same family and friends may at times become anchors that weigh you and your business down. For example: you hire your best friend to manage your accounting and bookkeeping. A few months into the business you realise they have begun taking the position for granted and are proving to be a bad fit. What do you do? You pull the plug and look for better alternatives like a professional bookkeeping service!

As minor as these considerations may seem – they matter. Time and again they have proved to be the difference between a successful start up and one that couldn’t survive even as long as the first 5 years.

Let’s not sugar coat it. The idea may seem intriguing and the process may be efficiently handled with professional assistance, but setting up and running a business is not everyone’s cup of tea. It requires resolve and commitment; above all it requires the drive that forces you to stand up after every fall.

For professional help, get in touch. If you found this information useful, we’d love to know! Feel free to share it so others can benefit too.

If you are in a start up situation and need some questions answered call Leslie Wells for personalised, professional advice. Call Les’ Hotline: 07732 090 847 to get in touch with him.

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