Home > News
Oct 201218

Discount off your first year end

year end

Your year end can cost you more than you think

Preparing your year end accounts can be costly your business – and that’s before you’ve event considered the financial aspect.

In finding, organising and making sense of your paperwork and records, there are time costs, emotional costs (usually stress!) and work-life balance costs to consider.

15% off your year end with us

Cross Accounting Services can help on all fronts. We love year end and so as a thank you from us, we’re offering 15% off your first year end fees with us.

So, you get to spend time doing the things you love at a reduced all round cost – and we get to spend time doing the things we love, thanks to you!

Call Nicola on 029 2065 3995 and quote reference CA15 to receive your discount or email her asking for more information also quoting CA15 Closing date 31 March 2014

Jan 201230

Self Assessment Explained

self assessment, year end

Don’t be one of the £2 million people who leave the updating of their Self Assessment to the last minute, or worse miss the deadline altogether. Bite the bullet if you need help then pick up the phone to an experienced professional.

Many clients that come through our doors, still needing reminding of what information is required to complete their Self Assessment online without a hitch.

Please see my 6 point plan

Your UTR Number and National Insurance
To be able to submit a Self Assessment you first have to be registered with the Inland Revenue as Self Employed. They will then issue you with a 10 digit reference number call a UTR number. This can be done over the telephone 0845 900 0444

Or online, follow the link below.

https://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept

This takes about five to six weeks for the Inland Revenue to register you, you will then have to telephone them to get your 10 digit UTR number. This is not automatically sent to you.

The Government Gateway
To register for Self Assessment online which allows you to send your Self Assessment online, you are issued with a 12 digit reference number which is printed out, and a password gets sent to your nominated address. If you are using an Accountant they will give you an 64-8 form to sign so that they can act as your agent with the Inland Revenue. They will then be able to send off your Self Assessment online through their agency number.

Partnerships
There is mis-conception that Partnership accounts are as straight forward to submit as your normal Self Assessment. You can only send out a paper version if you do this yourself by the deadline 31 October. Or you can submit the form online provided you have professional software, your Accountant professional can assist you with this.

Do not leave these to the last minute or you may find a £100 fine per partner you weren’t expecting if you miss the deadline. This needs to be completed along with your normal Self Assessment as an individual.

Paperwork Required
Self Assessment covers ALL income you receive during the financial year, 6 April to
5 April for in the UK and the rest of the world. This is determined by your residency status, all UK residents are to disclose their whole income.

All records of purchases during the financial year including any equipment or capital expenditure.
VAT return’s if that’s applicable
Your full 12 months bank statements, personal and business including saving accounts.
If you have had other employment all P60’s or P45’s
Dividend and interest payments.
Benefit payments
Property income and foreign income
Selling of personal assets and stocks and shares

All other records of income not covered above.

What you get in return
We will provide you with a full record of your income for the year for your business, along with a tax computation recording all of your other income. This takes into account the relevant tax reliefs available. Ie

Your tax code, – your tax free allowance
Capital gains tax free allowance
Pension payments
Charity payments
EIS and venture capital schemes – Investments
Capital Allowances
Rent a room relief – Property income
Wear and Tear Allowance – Property income

Deducting any tax that you have already paid.

You may be liable for tax on your trade income, and national insurance.

This is not complicated if you give yourself plenty of time to get everything together. We take you through every step of the way.

Payment
You have to make payments on account if your turnover is over £70,000, these are taken at the 31 January deadline and 31 July. We will notify you of these deadlines as they approach.

Monthly you can set up a direct debit with the Inland Revenue

Bill Pay or cheque, any balances then can be settled through the online system Bill Pay, credit card charges apply or by cheque in the post, or through the Giro system at the Post Office.

Self Assessment can be submitted anytime after the 6th April, so if theres a refund due to you why wait until January to get the paperwork to your Accountant. You can do it anytime.

These records need to be kept for six years even if you returned to the PAYE system.

Give us a call today, and make it a stress free process. 02920653995 or email Nicola@crossaccountingservice.co.uk

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

User Menu

Employed Vs Self Employed
Home > News
Sep 201213

Employed Vs Self Employed

general business, uncategorized

Self Employment Vs Employed

I get asked questions about subcontractors on a regular basis, so I thought I would share a few tips with you.

Employed

You will need to register for PAYE all employed staff regardless of the number of hours they work for you.    You need to keep personal information for example.  Name, address, national insurance, date of birth, hours worked and start and finish dates.   Keep a personnel file of any discussions or grievances too.

All employees require an employment contract, this can be simply done see the business link website for a template.

Business Link Template

Or you can use a registered HR Company to prepare one for you.

It describes the employee job title, description, hours of pay.  Rights to holiday entitlement, grievance procedures and sick and maternity leave.  Confirmation of start date and a job description, along with company rules and procedures.

You as the employer allocate work as required and set the hours of work to that employee, these are likely to consistent.  They do not have the responsibility of hiring or dismissing your staff.

You will need to keep employment records and records of salary paid, and you are responsible for their national insurance and income tax contributions.  You will also pay Employers National insurance on top of their salary, after the tax free allowances are taken into account.   Normally applying to full time time or part time after earning gross pay of £625 per calendar month. 2012/13 rates.

Self Employed or Contractors

Self employed staff or sub contractors are normally used on a temporary basis, the hours can be sporadic, and they have other customers besides yourself.

They would either be set up as a Limited Company, ie they are the employees of that company  or your supplier.   Or set up for self assessment.   They have the right to take or refuse a contract offered to them.  They also have the right hire and dismiss their own staff.

They have no entitlement to holiday pay, or sick pay through yourselves, or minimum wage.  But will normally charge for work done at their agreed hourly or fixed term rates.

They will either invoice you for the contract or have a deduction made on their fee through the CIS scheme.

The CIS scheme is a fairly simple scheme where you are either the contractor or the subcontractor, the contractor will deduct and pay over 20% of the subcontractors gross pay for income tax.  The subcontractor is responsible for their own national insurance.   There is a monthly submission required to tell the Inland Revenue what deductions have been made, and payment may be required.

Subcontractors can claim any overpaid deductions against their self assessment return, once a year.

A point to be wary of, any sub contractor that works only for you, and for more than six months will automatically be classed as an employee, once this time has elapsed and you will be responsible for their tax and national insurance.

If in any doubt contact the Inland Revenue helpline on 0845 900 0444

There are many case law studies, where this issue has become cloudy, and the sub-contractor has won the case, been able to sue the customer for lost holiday pay, sickness pay allowances.   Don’t let that be you.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own.  It is not intended to be used to make all of your business decisions but as a guide only.

Comments are closed

User Menu