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Category: Sole Trader

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Back to Tax Basics: Tax for unincorporated businesses

Back to Tax Basics: Tax for unincorporated businesses You don’t have to be a limited company to trade as a business. It’s possible that you’re operating already as an ‘unincorporated entity’ (usually as a sole trader, or a partnership). And the way that limited companies and unincorporated entities are taxed is very different. Here’s how…
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What is bank reconciliation – and why should you be automating this process?

What is bank reconciliation – and why should you be automating this process? Good bookkeeping is all about recording and matching your financial transactions. Over the course of a usual week of trading, you’ll have a range of payments being deposited into your bank account and a host of operational expenses being withdrawn from that…
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Getting ready for HMRC’s new penalty regime

Getting ready for HMRC’s new penalty regime Paying your tax bill on time can be a struggle. The HM Revenue & Customs’ (HMRC’s) penalty regime exists, to act as a deterrent for late payment and overdue submissions. But did you know that HMRC is planning to update and change its penalty regime? HMRC currently has…
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Back to Tax Basics: How does VAT work?

Back to Tax Basics: How does VAT work? Value-added tax (VAT) is a consumption tax that’s levied on goods that have had value added at each stage of the supply chain. Most businesses with annual sales of £85,000 or more have to register for VAT. And even if your sales are below that level, you…
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Back to Tax Basics: How capital allowances reduce your tax bill

Back to Tax Basics: How capital allowances reduce your tax bill Generally speaking, the business expenses you incur are allowable against your profits. But when it comes to fixed asset purchases (things like machinery, equipment or vehicles), these purchases are treated slightly differently. To reduce your tax bill when purchasing fixed assets, it’s important to…
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Back to Tax Basics: How does PAYE work?

Back to Tax Basics: How does PAYE work? Once you become an employer, you’ll need to set up a pay-as-you-earn (PAYE) scheme. All businesses that employ people earning above the National Insurance (NI) lower earnings limit (£120 per week) must register with HM Revenue & Customs (HMRC) as an employer and operate their own PAYE…
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15 things you didn’t know an accountant could do

15 things you didn’t know an accountant could do When asked “What does an accountant do?” many people answer with accounts, tax or compliance work. While that’s true, what many don’t know, is that the good ones do so much more. The best accountants will become a part of your team; they will give you…
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NI Increase / Social Care Levy

NI Increase / Social Care Levy The governement have announced that all rates of national insurance contributions and income tax on dividends will increase by 1.25 percentage points from 6 April 2022. This increase in rates will be rebranded as the ” health and social care levy” with effect from April 2023 and kept separate…
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Proposed change of accounting period for unincorporated businesses: are you ready?

Proposed change of accounting period for unincorporated businesses: are you ready? **UPDATE** – The government announced on 23rd September 2021 that the introduction of this has been postponed one year. **UPDATE** Are you self-employed? Or are you a partner in a trading partnership? If you are, you should be aware of the proposed changes to…
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Could you be eligible for the 5th SEISS grant ?

Could you be eligible for the 5th Self-Employment Income Support Scheme grant (SEISS) ? The pandemic has proved to be a tough time for the UK’s freelancers. But there is help at hand still in the form of the Self-Employment Income Support Scheme (SEISS). The fifth tranche of the SEISS is now available to freelancers, contractors…
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