HMRC Business Tax Changes - income tax payments

HMRC Seeks to Change Self Employment Dates

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Full article with thanks to: HMRC is consulting on changes that will affect the income tax payments of many sole traders and partners. The aim of these changes is to align the filing dates for the Making Tax Digital regime. If the changes take effect, some taxpayers will see higher tax bills in 2022/23. What is their current position? Businesses draw up their accounts each year to a particular date, known as the accounting date. They often can choose their own accounting date, which is not necessarily the same as the date on which the tax year ends. Currently, sole traders and partners pay income tax based on the accounting period which ends in the tax year. For example, a business that produces accounts to the 30 April 2021 will pay tax for 2021/22 based on those accounts, also known as the current year basis. In the early years …

business card

Why Business Cards Are Still Business Relevant

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Article with full thanks Usually, Business cards play a vital role in all the business (no matter what business you run) marketing that when utilized properly will help you to win or succeed in many new and small businesses it is said a business networking phenomenon. The business card you design must be more impressive such that it grabs the attention of the potential customers to your business. Therefore, if you are interested in starting a small business in the UK then you should certainly be familiar with the standard size and dimensions of the business card, which is the same throughout the UK. Business cards can be designed in different sizes, which is considered more important when you perform your jobs with international businesses. Here in this article, we discuss the standard size dimensions of the business card that is a typical card size for professionals in the UK. According to one of …

outsourcing bookkeeping for small businesses

The 9 Advantages For Outsourcing Your Bookkeeping Services

Cressida Johns Business Advice

Full article with thanks to: Let’s face it, you started your business because you have a passion and a dream. You didn’t start your own business because you love spending hours each week filing receipts and allocating expenditures. Likely, when you think of your dream it doesn’t include entering transactions into a spreadsheet every Sunday evening. However, bookkeeping is necessary because there is great value in keeping your books up-to-date. 96% of UK businesses fail because they don’t have visibility of their numbers. Bookkeeping is key in providing you much-needed visibility. Now whilst online accounting software, such as Xero and QuickBooks, can generate profitability reports at the touch of a button, thus removing the need for spreadsheets in your life, this is only worthwhile if the figures are accurate and correct. As a small business owner, it is vital that you are able to monitor the performance of your business. …

sole trader limited company small business

Should You Be a Sole Trader or Limited Company?

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Full article with thanks to: Sole trader or limited company? What form should your business take? COVID-19 helped to push UK business start-up figures to new heights in 2020. According to the Centre for Entrepreneurs, annual year-on-year UK business formations in 2020 rocketed by 13% to 772,002. A key decision when starting a business is which legal structure should you choose when registering. The three most common options are sole trader, limited company and ordinary business partnership, although most people become a sole trader. Sole traders make up about 59% (3.5 million) of the total UK business population of 5.9 million. They include many freelancers, contractors and agency workers. Ordinary business partnership members make up about 7% (405,000) of the UK business population. Basically, these are sole traders who go into business together. The UK also has about two million (34%) active private limited companies. So, why do so …

business tax for small businesses

Which Taxes Applies To Your Business

Cressida Johns Business Advice

Full article with thanks to: Introduction to small business tax Your business may have to pay a number of different taxes, such as: corporation tax income tax VAT business rates Employers’ National Insurance contributions capital gains tax What tax your business pays will depend on how it’s set up, whether or not you have employees, and other factors such as your business assets and premises. Primarily, your business will be taxed on its profits (the net amount of money it makes after losses and expenses). How this happens will depend on its structure. Sole traders pay income tax, as do partnerships (with partners submitting separate tax returns), and also Employees’ National Insurance contributions. Limited companies pay corporation tax. You may also have to pay business rates on your premises. If you supply VAT-able goods or services, and your taxable turnover is above a certain limit (currently £85,000) then you will need to register for VAT. …

business software for small businesses

Is Free Business Software Good or Bad For Your Business?

Cressida Johns Business Advice

Full article with thanks to: Free business software isn’t always the second best. In fact, some of the best software is free, enabling your business to benefit from up to date, highly capable applications without paying a penny Types of free business software The easiest way to find free business software is to look online. It tends to fall into one of four categories: Freeware. Freeware is available at no cost and with no restrictions. Freeware tends to be simple software designed to perform one or two tasks. Free trials. Previously known as ‘shareware’, free trials enable anyone to try out an app for a limited period of time, after which a fee must be paid for continued use. Vendors may also choose to disable certain features during the free trial period. Open source. Open source software can be freely adapted by anyone with the knowledge to do so. The open source …

business partnership

What is the Advantage of a Partnership Agreement?

Cressida Johns Business Advice

Full article with thanks to: The principal law governing partnerships is set out in the Partnership Act 1890 (the “Act”) which defines a partnership as “the relation which exists between persons carrying on a business in common with a view to profit” (section 1 of the Act). The question of whether a partnership exists or not is therefore a matter of fact (not necessarily agreement). It is therefore not something that the parties can simply determine for themselves. While the relationship can be governed by a written partnership agreement, the essence of a partnership is the continuing relationship between two or more individuals, personal as well as commercial, with the contractual partnership agreement being only an indication of the relationship. The reason why it is important to have a written partnership agreement is that where there is no written agreement, the provisions set out in the Act (which is …