General
A. At Hammond-Barr Accountants, we take your data security seriously. This is why we have actively taken steps to secure our IT systems against cyber threats so that you can rest assured that your sensitive financial information is in good hands.
Accountancy / Bookkeeping
A. It's a legal requirement imposed by HMRC - should they require further information for any reason, accurate records will allow you to respond easier, making any enquiries less stressful. We guarantee to prepare accurate accounts and file them with HMRC with compliant software by the due dates.
A. These services will ensure that you don't overpay taxes and that you have an up to date record of how much money people owe you (and how much you owe them!).
HMRC Tax Enquiries
A. These are generally random and can happen at any time. They could be for your PAYE records, tax claims (both personal income and corporation tax), or your VAT claims.
It is therefore important that not only should all books and records be accurate but they should also be readily available should an HMRC inspector wish to see them.
A. Let Hammond-Barr prepare accurate accounts and ensure all your books and records are up to date.
A. You have the right to appeal within 30 days, but this is a complex area and requires the expert help we can provide.
Business Start-ups
A. We offer a free consultation and advise you how to structure your business. It could be as a sole trader, partnership or limited company.
In addition, you are given free access to all our core services and other value-added services. As an owner-managed business you qualify for a twelve-month reduction on our standard fee. The fee is fixed and easy payment terms are available. We know that new businesses are often in flux, so we offer a guaranteed fixed fee service quoted in advance.
This includes:
Easy payment plan to spread costs
Unlimited free support via email, phone, and in-person meetings - no need to worry about being “on the clock”
Regular updates and advice
Guarantee to meet all deadlines
A. We can help you ensure that your accounts are prepared accurately and are HMRC-compliant, meaning that you can focus on what you do best.
VAT
A. The standard rate is 20%, but there are four different VAT rates depending on the product/ service.
There are several VAT schemes: standard accrual basis, cash accounting basis, annual accounting basis, and the flat rate scheme which generates a profit for your business.
Yes, it is, once your annual turnover reaches £85,000.
Yes, you can, but this would be determined by whether or not it is to your advantage.
We can offer specialised advice in all areas of VAT as we are true experts in helping small and medium-sized owner-managed businesses.
Corporation Tax
A. It is 19% on company accounts for the 2021/2022 fiscal year.
A. We will advise you on all corporation tax matters and help you on what actions to take to reduce the amount you are required to pay.
A. We will advise you on the best way to declare this and help you to see how you may be able to recover tax that you have paid in a previous account period.
A. You can, depending on your expenditure. We'll help you to look at things such as pension contributions.
Limited Companies
A. A limited company is a separate legal entity, unlike a sole trader, but the profits are still attributable to the individual. This can often make it more tax efficient. The profits of a limited company are charged at the corporation tax rate of 19% (2021 – 2022) whereas profits of a sole trader are charged at 20% up to £50,270 and then 40% thereafter.
A. You can take a tax-free wage up to £12,570 each year and dividends from the surplus profit. The first £2,000 per annum is tax-free and 8.75% on total income up to £50,270. Dividends attracting higher rate of tax are taxed at 33.75%
Sole Traders & Partnerships
A. If your turnover is under £50,000 per annum, it is generally more beneficial to be registered as a Sole Trader.
A. Your annual profit (income less expenditure) is taxed at the rate of 20% up to £37,700. This is declared on your self-assessment tax return and added to any other income.
A. This is normally 12 months from the date of commencement of trading. Tax is paid in two instalments of 50% by 31 January and 31 July each year.
A. Yes, unlike a limited company, profits are taxed even if you do not take money out.
As a Sole Trader, you will pay Class 2 NIC on profits above £6,515 and Class 4 NIC where profits exceed £9,568 (2021 – 2022).