Archive for the ‘Uncategorised’ Category

The real tax cost of benefits in kind

Thursday, June 13th, 2019

There is a sting in the tail for companies that provide their directors or employees with taxable benefits as part of their remuneration package.

Obviously, the directors or employees that receive the benefits will pay additional income tax if the benefits provided are chargeable to tax: for example, the use of a company car.

The cost of the benefits is generally a deduction for the employer, and this would reduce the employer’s corporation tax bill, but it also triggers an additional, employers’ Class 1A National Insurance liability.

The amount payable is 13.8% of total taxable benefits provided.

Although this extra National Insurance payment is itself a deductible item for corporation tax purposes, this is still a net loss of cashflow for the company and needs to be considered when planning remuneration packages for directors and employees.

As we have posted previously on this site, one way that a company can trim this additional NIC charge is to negotiate a repayment of a taxable benefit from affected employees.

Why consider this?

Why would an employee consider repaying all or part of the cash equivalent of their benefit in kind? Doesn’t this diminish the value of their perks?

Certainly, this is not a strategy that you would use for all benefits provided, but there are some where there are real win-win outcomes for the employer and the employee.

A prime example is fuel provided to employees or directors for the private use of their company car. You would need to crunch the numbers, but it may well pay the employee to pay back the cash cost of private petrol provided – thus avoiding the car fuel benefit charge and reducing their income tax payments by more than the refund of fuel costs – and at a stroke, reducing the employer’s Class 1A NIC charges.

6 July 2019 deadline for 2018-19

The deadline for employees to make refunds of these types of cost to employers is before 6 April 2019 for the tax year 2018-19.

If you are unsure if this would work for your company, please call, we can help you calculate if there would be an overall benefit from adopting this idea.

E-bike cycle to work scheme announced

Tuesday, June 11th, 2019

Readers who have been tempted to cycle to work but are challenged by fitness issues or really can’t afford the bike they would like, might be interested in the recent announcement that has extended the existing Cycle to work scheme to include the use of so-called e-bikes.

These are bikes with electric motors that assist with taking on those challenging gradients.

Here’s what the Department for Transport have said:

A refreshed Cycle to Work scheme could help many more commuters turn to greener journeys using e-bikes.

  • push to increase use of e-bikes to help tackle congestion, speed up commutes and cut travel costs coincides with the launch of Bike Week
  • refreshed government guidance will make it easier for employers to provide cycles and equipment including e-bikes worth over £1,000
  • employers encouraged to get their workforces cycling through loan and pooled cycle schemes, as part of government plans to encourage more active travel

Commuters will have more opportunities to boost their health, benefit the environment and speed up their journey to work, thanks to updated Cycle to Work guidance.

Cycling Minister Michael Ellis has announced a refreshed scheme today (9 June 2019), which could help many more commuters turn to greener journeys using e-bikes, 70,000 of which were sold in the UK last year.

E-bikes have an integrated motor that helps a cyclist pedal, allowing them to reach speeds of up to 15.5 mph in the UK. They are seen as a game changer for their potential to make it easier for older or less fit people to make cycling a part of their commute.

The refreshed guidance will make it easier for employers to provide bicycles and equipment including e-bikes worth over £1,000, by making it clear that FCA authorised third party providers are able to run the scheme on their behalf.

If you are interested, we suggest that you seek out a local bike dealer who can organise the formalities for you.

What is VAT and what do you need to know?

Friday, June 7th, 2019

Most people are aware of the term “VAT”, but unless you have experience in selling goods, the chances are that your knowledge of VAT and what it truly means is fairly limited. VAT, otherwise known as value-added tax, is a tax put upon products to compensate for any taxpayer-funded services enlisted in their manufacture and distribution and, in the UK, is included within the retail price of goods.

Here, we’ll discuss the ins and outs of value-added tax and answer some of the most frequently asked questions about this tariff.

Does your business need to pay VAT?

If you own a business, you may be wondering whether you need to pay VAT on any goods you buy or sell. Currently, companies who turn over more than £85,000 a year must pay VAT to HMRC, which is recorded and dealt with during quarterly tax returns. Once registered, businesses need to charge their customers VAT throughout the year – in addition to paying other businesses VAT on any goods purchased from them. This needs to be recorded accurately throughout the year so that you don’t end up over or underpaying HMRC.

How much VAT do we pay for goods in the UK?

For countries in the European Union, implementing and paying VAT is compulsory. However, the amount of VAT charged on goods and services depends on individual states who have the flexibility to define their own value-added tax rates – as long as it complies with the EU’s VAT law. Currently, the minimum rate that a member of the EU can charge is 15%, however, some countries do decide to charge significantly more.

In the UK, VAT rates are as follows:

  • The standard VAT rate is 20%
  • The reduced VAT rate is 5% (this rate is applied to some products and services, such as sanitary wear)
  • The second reduced VAT rate is 0% (this rate is applied to some products and services, such as the majority of food items)

It’s important for businesses to note that:

  • The sale of items with 0% tax does need to be recorded on your VAT return – despite the fact that no VAT is actually paid.
  • Items which are exempt from VAT, such as stamps, do not need to be recorded on your VAT return.

Do VAT rates change?

VAT rates do change, so it’s important for businesses to pay attention to make sure they’re charging and paying the correct amount. These changes are usually announced in either March or April, before the beginning of the new tax year, so businesses will need to make sure their sales prices are updated accordingly in order to comply with the new figures.

Understanding the ins and outs of VAT, including all legal processes involved with VAT returns, can be challenging. That’s why, if you’re a VAT-registered business or you predict you may be soon, it’s advisable to hire the services of a chartered accountant to help you with honest and accurate financial advice.

As experienced charted accountants based in Birmingham, we at Barron & Co Ltd are the top choice of accountancy company for businesses in the local area. We have all the expertise you need to navigate through your VAT returns and are dedicated to helping our valued clients with a whole range of financial services. For more information about what we could do for you, please don’t hesitate to get in touch with us at Barron & Co Ltd today.

Common payroll mistakes to avoid

Friday, June 7th, 2019

Taking care of your company’s finances is one of the most important parts of running any business. Evaluating your profit and expenditure, paying your taxes on time, and making sure you’re in a position to pay your employees correctly are all imperative, and failing to do so will likely land you in hot water time and time again.

Paying your workers is essential to keeping your workforce happy and fulfilling your obligations as an employer, but tackling payroll can seem challenging to many. Here are some of the most common mistakes you’ll need to avoid if managing payroll is your responsibility:

Being inconsistent

Your employees will have bills to pay and financial obligations of their own to meet, and they’ll likely be relying on the monthly payments they receive from work to deal with these. As a general rule, you should be paying your employees on the same date every month, or a few days before the agreed date if it falls on a weekend or Bank Holiday. Being inconsistent with your payments could cause them lots of problems, leaving you with a discontented workforce and a reputation for unreliability.

Over or underpaying your employees

Miscalculating how much you owe your employees from month to month will cause a whole number of problems, many of which require a lengthy process to resolve. If you underpay your employees, you’ll need to react quickly to make sure you don’t have to deal with complaints or grievances later on down the line. On the other hand, if you overpay your employees, you may end up losing money – especially if the problem isn’t flagged up by your employee or noted by your financial department. Additionally, if the employee in question doesn’t agree to pay back the extra money, you may have to seek legal assistance.

Leaking private information

Your employees’ financial information must be kept confidential at all times, so you’ll need to make sure this is properly protected. In order to run a happy company, your employees must be able to trust you and rely on the fact that you’re keeping their personal information safe and secure. From maternity payouts to childcare support, there are some things that your employees may not want to share, so you’ll need to make sure you have strong confidentiality measures in place when dealing with payroll.

Not keeping up to date with payroll changes

Staying up to date with all payroll-related legislation and regulations is essential for every business. Failing to comply with the law could see you run into trouble with the government, which is something that no company wants to deal with. Additionally, failing to stay up to date with tax changes and other amendments is likely to waste time in the long run. You’ll have to spend more time identifying and fixing errors than you would by simply updating your payroll in the first place.

Payroll mistakes, even those which may appear to be minor, can cause a lot of problems to both small and large businesses. To minimise the risk of errors from occurring, consider investing in payroll services from a chartered accountancy business, such as Barron & Co Ltd. Based in Birmingham, we provide top quality payroll services to businesses in the local area, helping them to save money and develop a trusted relationship with their employees.


For more information about our accountancy services at Barron & Co Ltd, please don’t hesitate to get in touch today.

Tips for Finding Expert Accounting and Bookkeeping Services – Choosing a Chartered Accountant

Friday, June 7th, 2019

Whether you run a small local business or are in charge of an international company, there’s a lot to think about when it comes to your business finances. From staff payroll to tax contributions, every business has procedures they have to follow, which can be difficult when you’ve got a thousand and one other tasks on your hands. It’s important to keep accurate records of all your financial transactions, and if you’re stressed or busy this might be one of the first things to let slip.

Luckily, this is where professional accounting services come to the rescue; a chartered accountant has all the skills and qualifications needed to take care of bookkeeping and accounts on your behalf. From professional advice to account auditing, financial reporting and more, accountants provide many valuable services, so it’s important to select the right one for your business. If you’re thinking about hiring an accountant for the first time, or switching companies, read on for a brief guide about the services a chartered accountant can provide and how to select the most suitable candidate.

What is a chartered accountant?

As you might expect, a chartered accountant provides many of the services that a regular accountant does, however they have a higher level of training and qualifications so you can be sure that you’re getting a certain degree of expertise.

To become a chartered accountant candidates need to have successfully passed the ACA, a highly respected qualification that involves at least three years of on the job training and a series of exams. While accountants tend to specialise in one area of finance, a chartered accountant will often be responsible for all financial records for a business, as well as providing professional advice and financial expertise. They tend to work in sectors such as large non-profit organisations, government, large corporations or the industrial sector.

What services do they provide?

It’s vital to think about the specific needs of your business before hiring an accountant, and it’s worth weighing up what it is you need that a chartered accountant can provide over a regular accountant. Below we will look at a few of the specific services they offer so you can decide whether it’s right for your business.

Accounting audits

Accounting audits are one of the most important tasks performed by a chartered accountant, and they are used to make sure a company’s financial statements are accurate. It also examines whether the company’s accounting systems are functioning as effectively as possible, if there are any weaknesses that can be identified and what, if any, steps can be taken to eliminate the risks of accounting errors or fraud.

Taxation

As you might expect, tax services are a big part of what a chartered accountant provides for a business. A CA can offer tax compliance services, which assess the degree to which the taxpayer is abiding by tax laws, e.g declaring earnings, filing tax returns and paying taxes on time.

A chartered accountant can help businesses get all their taxes in order, and also offer advice on where money might be saved, as well as general best practice for how businesses manage their taxes. This includes tax planning to minimise tax liability where possible, and any tax issues that might arise from business mergers or acquisitions.

Management accounting

A chartered accountant will be trained to analyze and interpret financial data in order to advise a company how best to manage and develop their business. It includes formulating policies, performance evaluations and analyzing business costs to produce reports and records that can be used to further a company’s performance.

Financial and investment planning

This includes developing effective strategies to improve and strengthen financial security, advice for managers on making important financial decisions, assistance putting financial plans into action and ongoing management of a company’s investments.

Investment planning helps a business manage their financial goals with the resources available, as well as advice on how and where to invest, for example whether to use cash, bonds, equities or property.

Share valuation

This simply calculates the total value of any private or public company’s shares based on quantitative techniques. Share value will depend on market demand and supply, and share valuation is often calculated in the event of a company takeover, merger or acquisition.

Business advice

A chartered accountant can offer your business advice covering a wide range of scenarios, from business transactions like mergers, to how to improve certain areas of the business, dealing with insolvency, tax and treasury issues and expert advice regarding investments or future business plans.

Cost accountancy

This involves recording all costs incurred by a company’s activities and coming up with a plan of action to improve efficiency. It includes assigning certain costs to products and services the company needs, and how best to manage the budget set by the management. A chartered accountant could advise how best to split costs amongst certain outgoings, products or services to ensure the company is operating as cost efficiently as possible.

How to find the best candidate

As you can see from the services listed above, a chartered accountant provides many specialist services on top of those offered by a regular accountant. If you’re making a one-off important financial decision, or run a large company with complicated finances, a chartered accountant can help. They also offer peace of mind that the advice given is up to a certain professional standard and level of accuracy, and they are regulated by a professional body with its own high standard of policies and procedures.

You can also be sure that they have a certain level of experience (minimum three years) working and training on the job before obtaining their qualification, and they can aid a business to thrive and grow, going above and beyond the usual tasks of keeping records and filing tax returns. If you think a chartered accountant is right for you, see below for a few ways to find an accountant to suit your needs.

Check the ICAEW database

The Institute of Chartered Accountants in England and Wales (ICAEW) has an online database that provides the only directory of chartered accountants in England and Wales. An ICAEW registered accountant or firm gives you the guarantee that they have passed the necessary qualifications to become a professional chartered accountant.

All members will have obtained their initial qualification from the Association of Accounting Technicians (AAT), as well as the higher Association of Chartered Certified Accountants qualification (ACCA).

Use social networks

This is applicable to both online and offline networks; ask any family and friends with their own business about their accountants and who they would recommend, although bear in mind that every business is different and what they value highly might not work for you.

You can also make good use of social networks online, LinkedIn is a great place to start searching for recommended accountants, and even Facebook can be useful for getting the word out there. 

Think about location

Nowadays, more and more companies are choosing to work with accounting firms online, using cloud-based technology to manage all their affairs. This makes a local location less of an issue, but it all comes down to personal preference. If you’re comfortable communicating via phone, email and video calls, then you could choose a chartered accountant based anywhere in the world. If you do choose an accountant abroad, make sure they’re up to date and know the tax laws in your country inside out to prevent any crucial mistakes.

However, some people believe there is no substitute to building a face-to-face relationship, so if that sounds like you then you’ll need to research accountants based in your area, or those willing to travel on an occasional or regular basis.

If you’re looking for highly experienced, friendly chartered accountants in Birmingham, get in touch with Barron & Co Ltd. Our professional and reliable team of chartered accountants are fully equipped to adapt to the needs of your business, whether that’s a global company, sole trader or charity organisation. If you need accounting bookkeeping services, company registration, business and tax advice and much more, we come highly recommended and can be on hand to help with any issue you may have. For more information and to discuss how we can help your business thrive, give us a call or visit our website.

Four Important Things That an Accountant Can do

Friday, June 7th, 2019

In today’s economy it’s now recognised that supporting small businesses should be encouraged, however the success of these ventures depends largely on the financial situation of the business. Starting up a business is a big step, so it’s understandable that you would want to have complete control over every aspect, but it’s important to recognise that there are professional services on had to help.

Accountants are experts in finance-related procedures and are a great way of ensuring your business is financially sound. If you haven’t already, it could benefit your business to have an accountant on board – this blog will provide a little more insight by explaining three of the important tasks that an accountant can help with.

The start-up process and growth

If you’re trying to come up with a financial business plan for your next venture then an accountant can assess whether your predictions are feasible, or how a new business may pan out in the future. Through insight across your finances they’ll be able to identify areas for growth, areas that can be improved and practical budgets for different areas of your business. It’s also important to build a good reputation for your business, if you’re late paying clients for example this may not bode well in building future relationships.

Help with tax

All small businesses are required to submit a tax return to declare your earnings to HMRC. But when it comes to submitting your tax-related figures, it can be easy to miss out important information unintentionally. An accountant will be able to go through your business with a fine-tooth comb to make sure you’re making full use of your tax allowance and paying what you owe.

Decisions and change

Whether you plan on adding a new service to your business or changing your supplier, every decision you make will affect your business finances. You should never rush ahead with this as something that appears to be a good move may actually have a negative impact on other areas of your business. An accountant will be able to guide you in your financial decisions and provide financial forecasts to help you make an informed decision about where to take your business.

Payroll

Even a business with a small team of employees needs to have a professional way of organising payroll. When people are off sick, do overtime or have holiday making sure you pay each employee the right amount can get confusing. Not to mention important forms such as P45’s and new starter information that’s needed to enroll someone in your business. By hiring an accountant this can all be covered in a manageable and easy to understand way. If you’re looking for a team of experienced and friendly accountants, then Barron & Co is the Birmingham based firm that can provide just that. With in-depth knowledge and expertise, we can help make a positive difference to your business and reduce the stress of organising your finances. For more information about what we can do to help contact us today for more details

Benefits of Having a Business Accountant

Friday, June 7th, 2019

Any business, big or small, should have a professional strategy in place for their finances, which is why many people seek help from an accountant. Juggling every aspect of your finances as well as running other parts of a business is a hard task for anyone, so why not lighten your load and ensure things are done properly. Accountants have a range of skills that can be used to help with payroll, tax and generally keeping track of your ingoings and outgoings.

Whether you need financial guidance or you’ve just started a business and want to give it it’s best chance at success, below we detail all you need to know about having a business accountant.

What does an accountant do?

The role of an accountant is to prepare and examine financial records to ensure your business is financially stable, and that you are complying with relevant financial regulations. The amount of contact you have with your accountant will vary – some people will speak to their account weekly whereas others may only be in touch just before tax season.

Other tasks include:

  • Suggesting practical ways of reducing outgoings
  • Improve business efficiency
  • Keep books up to date
  • Prepare tax returns
  • Overseeing payroll

What are the benefits of having an accountant?

There’s a lot to be said for having an accountant – unless you’re a complete whizz with number and have in-depth knowledge of finance then hiring some extra help can only be a good thing.

Saves you time

Organising your finances need to be done with care, as rushing it or guessing how things are done could result in serious problems for your business. For those heavily involved in their business it’s a sensible decision to have an accountant that can take care of your finances while you concentrate on other aspects of the business – a discussion with your accountant will determine exactly what you need help with so you still feel in control.

Removes worry

According to 2016 statistics, after just five years of trading only 4 in 10 business will survive with financial problems being a main clause of failure. Much of this worry can be removed simply by having financial help in place such as a business accountant. Not only will this help secure the success of your work but will remove the stress which comes with finance-related operations – although running a business does require a lot of hard work you should also be able to enjoy your accomplishments without stress.

Improves your business

There are a lot of tasks that come with organising your finances which mean things can get confusing. However, an accountant will have experience in ensuring people’s finances are in order, which is why they are an important element of starting up a business. Not only can they help you produce a finance plan for your start-up, but once you’re up and running they can suggest ways for you to improve your cash flow through detailed insights into your outgoings and create financial forecasts so you can make better decisions.

If this blog has got you thinking about seeking help from an accountant, then Barron & Co based in Birmingham, have a team of highly experienced accountants that can help with your needs. It’s important that you keep up with taxation laws that could affect your company, as well as generally ensuring that your business finances are in a good position. To find out how one of the best recommended firms can help you, contact us today.

A Beginners Guide To Self Assessment Tax Returns

Friday, June 7th, 2019

If you happen to be a self-employed business owner or work as a freelancer, the chances are you will already be familiar with self-assessment tax returns. But if you’re not so familiar with them, the process of doing them may seem a little overwhelming, especially due to the fact that the government frequently make changes to policy relating to how they need to be done. Taking this into consideration, we have accumulated some key information you need to know in order to make the self-assessment process as simple as possible.

What kind of tax do small businesses need to be paying?

This is largely dependent on what kind of business you run; there may be a few different types of taxes you’ll need to pay, but here are a few of the most common forms of tax:

  • Income tax
  • VAT
  • Corporation tax

According to HMRC, you are considered self-employed and fully responsible for filing a self-assessment tax return if:

  • You are the person who has the final word on how the business is run
  • You are accountable for meeting losses as well as making a profit 
  •  You can employ someone on your own terms
  • You are the key decision maker in deciding factors such as what work you do, how you do it and the location of your services
  • You regularly work for other people

Different rules may apply if you work within an agency, if you are a company director, or if you are a holder of another office. The majority of sole traders will be held accountable for filing their own business tax.

Registering for self-assessment    

In order to register for self-assessment, you must go onto the Gov.uk page and register by submitting your personal information. If you run a limited liability partnership a slightly different process will apply and you will go through a separate registration process. Once you have completed your registration, you are able to file your tax return. You can fill out this form online or print a copy and do it by hand. After doing this you’ll need to pay the tax you owe. The deadline for paying your tax is usually the same as the final date for the online self-assessment tax returns.

How do you fill in your self-assessment?

You are going to require all the information regarding your earnings from that tax year, you will also need the details of any expenses you want to deduct from your taxes. It’s crucial that you keep a record of all of your income and expenses. There are countless ways of doing this; there are even accounting apps you can use as well as various other online systems if you would rather keep a digital record.

If you require assistance with your taxes, get in touch with Barron & Co based in Birmingham, our trusted chartered accountants will prioritise your needs as well as offer our professional guidance and advice. Give us a call today and see what we can offer you.

Signs Your Company Needs a Bookkeeping Service

Friday, June 7th, 2019

Every business owner wants to save money, which often leads to doing far more in house than should be done. There comes a time, as your company grows, when you’ll need a bookkeeping service. It’s fine to do the payroll and manage expenses on your own in the beginning, but if your business is growing, you’ll need to expand at some point and a bookkeeping service can free you up for faster growth.

How do you know if it’s time to start using a service instead of doing things on your own? Here are a few indications.

You’re behind in your bookkeeping: A very good sign that you’re ready to hire someone else is when you aren’t able to keep up with bookkeeping on your own. If you can’t open your books and see exactly how much income you have and how many expenses, at this very moment, you probably need some help.

You’re not sure if you have enough money for your own salary: If you aren’t quite sure where the money is supposed to be going, you will want to get someone else to work on the books. It’s essential that you know exactly how much profit you are making at any given time, so you can change tactics if something isn’t working.

Your accountant does your books at tax time: Are you passing everything along to your accountant to do the taxes and catch you up on things? If that’s the case, you definitely need to hire a bookkeeping service, since it’s an area you really don’t want to let go. Not to mention, you’ll pay a lot more when it comes to getting the accountant to do a rush job.

Your clients aren’t paying on time: Of course, you may not realize people aren’t paying on time if you aren’t on top of things. This is a very important reason to hire a bookkeeper, so they can help you chase payments if need be. When you are behind on your books, you may not even know who owes you money.

You keep paying late fee: Are you paying fines because your payments are late? Whether this is due to forgetting to pay or simply not having the money on hand to pay your bills, you need to get on top of things. Being organised is one thing that can be difficult when it comes to money. You need to hire a bookkeeper to stay on these for you and to ensure you aren’t paying late fees on a continuous basis.

A bookkeeping service can help your company grow by cutting down on unnecessary fees and reminding you of customers who haven’t yet paid. It will also free you up to pursue other areas of the business that you excel at. In short, it’s a very good investment.

How to Make Limited Company Formation Easy

Friday, June 7th, 2019

Are you considering converting your business to a limited company? It’s a process that is simpler than you might think, though it can be helpful to have an accountant help you set it up.

If you’re ready to move from solo to limited, there are a few things you should know. A limited company is basically its own entity. It’s like a person in that it can earn money, lose money, gain debt, and pay taxes. The limited company will also have its own bank account. Basically, it is a very separate thing from the business owner.

The Advantages of Having a Limited Company

Wondering what the big deal is about having a limited company? Well, there are some serious advantages to this method of doing business.

Reduce Your Taxes

You’ll find that you can pay less personal tax when you have a limited company. One way to do this is to become a shareholder and take out your income from dividends. It is a more efficient way to do things and you’ll find that you save quite a bit of money this way.

Separate Yourself from the Company

When you are operating as a sole trader, you and your business are essentially the same entity, at least when it comes to administrative purposes and taxes. However, when you move to limited, the company becomes separate. This allows you to have the business build assets separately from you.

This also allows you to have limited liability in that you aren’t responsible for a financial loss if your business loses money. It protects you from financial claims, unlike running your own business as a sole trader.

It Looks More Professional

From the outside, even if nothing has really changed with the actual business, a limited company looks more professional. In fact, some companies will only work with limited companies and you will find that more doors are open to you once you make things official.

You Can Claim Your Name

When you’re a sole trader, anyone could use the same business name. That ruins your image and can be a difficult issue to resolve. However, if you are registered under the Companies House as a limited company, your business name is protected. No one else can use it or a variation for that matter.

You Can Have Shareholders

As a limited company you can bring in shareholders and even raise money or take out a loan easier. That’s because your business is determined to be a separate entity. When you go in to get a loan, the loan officer needs to look at the business and not you for the loan. If a shareholder dies or decides to sell his shares, it will be much simpler if you have a limited company, too.

There are plenty of benefits to creating a limited company and it’s a good idea to research this well and talk to a business accountant before you get started.

How to Set Up a Limited Company

The first step in registering your business is to choose a name and decide where you want to base it. It’s a good idea to choose a name that can be used if you expand your business later. For example, if you are setting up a hair salon and call it Hair Beautiful, it will be harder to expand into nutrition teaching or products at a later date.

Next, you’ll need to divide up shares in the company. If there are multiple owners, they should get equal shares, or one person may own more shares and make the decisions. You can also bring in other shareholders, if you like, but you’ll need to pay a Stamp Duty at your HMRC office.

Since this can get a bit convoluted and complicated, it is a good idea to bring in a business accountant who can give you tax advice and help you figure out the division of shares.

Next, you’ll need to set up your company legally at Companies House. This can be done online, but again, you may want your accountant to handle all this for you. While it’s a simple process, you do need to assign a company director and a secretary. These roles can both be fulfilled by a single person if you need them to be.

Once you’ve set everything up, you have to file a Memorandum of Association. This is also submitted to Companies House and will indicate why you created the company and offer your plans for managing it. This needs to be set up by an accountant, since it is a document that will serve in any tax disputes or court cases.

A business bank account is the next step and this is something that can be difficult to do through High Street banks. You can use a service or an accountant to help you get this all set up. In fact, it’s probably simpler to have someone else manage it all for you.

They can set up the bank account in your company name and ensure that you have all the information for the account, then you’re free to use it for your business. Remember that you need to have a business account in order to run your business. It’s not allowed to use a personal bank account for business dealings with a limited company.

Finally, you’ll have to register for VAT. This is also done online and can be done on the HMRC website. Your accountant can manage the VAT for you and you just need to be sure that you bill your clients for it when you receive the registration. You can back bill for this, but you do need to explain to your customers what to expect.

Setting up a limited company can be time consuming and it’s often simplest to outsource this part of doing business. Your accountant should be able to handle nearly everything for you and that means you can focus on actually getting down to business.

Why You Need an Accountant to Handle Bookkeeping

A business accountant can be the best investment you make for your company. A huge number of small business owners don’t have an accountant and they are much more likely to fail, due to poor management of their finances.

If you don’t know where your money is coming from or where it’s going, you can’t stop the leaks and earn more. It’s a difficult decision, but you need a business accountant to help you make more money and stay on top of finances. This is where bookkeeping services come in handy.

A business accountant offers far more than just doing your taxes once a year. In fact, having an accountant to consult with can help you find the best deductions throughout the year and this is a very useful reason to hire one.

You’ll also save a lot of time and keep your business profitable if you hire a professional to manage your finances. An accountant can also help you figure out when a purchase is a good financial decision or a bad one and help you find opportunities to save money. It may be extra money you’re paying out, but it’s well worth it. You’ll save far more in the long run, in most cases.

How to Find a Chartered Tax Advisor

A simple way to find a chartered tax accountant is to look at accounting firms. They are going to be used to handling taxes for businesses, but can also offer many other services. A good tax accountant can help you by looking carefully at your business and making sure you have all your finances in order.

A chartered accountant will also stay abreast of any changes in tax or business laws that could affect you. When you hire an accountant to look after your finances, you free yourself up to focus on what you do best, make money. You can run your business and the accountant will handle the finance side of things, making life much simpler for you.

Whether you are looking at hiring an accountant to create a limited company or just to manage your taxes and handle bookkeeping tasks, you have plenty of options. You’ll find that this is a good way to invest in your company and ensure that you are following the law on everything.

Are you looking to set up a limited company? Let Barron & Co Ltd. help. We have chartered accountants ready to help you get your business in order. Contact us today to find out how we can help.