A UTR or Unique Taxpayer Reference is a 10 digit reference number that HMRC gives you or your company when you register for self assessment tax. You will need this reference number whenever you communicate with HMRC.
You will find it on correspondence from HMRC including, notices to file a tax return, payment reminders and statements of account. You can also find it in your HMRC online account. If you can’t find any of the above, you can call HMRC on 0300 200 3310.
You may receive correspondence from HMRC whether it is unexpected or not and an accountant will be able to liaise with them on your behalf if you wish, to take the stress off you.
An accountant will be able to help clients who are behind on self assessment, advising HMRC on undeclared income. From investigations to routine VAT inspections an accountant will be able to help you deal with all these enquires
An experienced tax planner will be able to help you identify tax saving opportunities, therefore saving you money that you can re-invest back into the business.
The tax year runs from 6th April to the 5th April each year and you have until 31 January the following year to file your return and pay any tax and National Insurance due. You may also have to make a payment on account on 31st January and 31st July.
The requirements to comply with HMRC regulations are generally that you must pay your Corporation Tax bill within 9 months of the end of your financial year, and then file your company Tax Return within 12 months of the end of your financial year.
You are required by law to register for VAT if your business turnover exceeds the annual registration threshold. You can also register for VAT voluntarily if it is beneficial for your business. An accountant can advise you regarding this.
There is lots to consider, especially regarding the legal requirements when starting a new business. An accountant will advise you on the best trading structure and help define the legal responsibilities to give you the best possible start.
We can help with tasks such as creating business plans, registering your business calculating business expenditure and registering for VAT. We will work with you to help ensure these financial areas are set up smoothly and efficiently.
This should be the first question you ask your accountant, as you need to know how you are going to trade. For a start-up, usually this is either as a limited company director or a sole trader.
A general rule if your profits are likely to be over £25,000 a year and you are planning on working full time on your business, they are likely to recommend that you go limited.
Otherwise your accountant could recommend you trade as a sole trader to start with and reserve your company name with Companies House, so when it becomes more tax efficient for you to operate through a limited company, you will be able to incorporate your company with the name you would like.
The main difference is as a limited company director, the company is liable not yourself personally. Whereas a sole trader you would be liable for any business debts. As limited company owner you will have a little more paperwork to do than a sole trader but a good accountant will be able to explain this in more detail and ensure you are trading in the most tax efficient way for you.
There is a lot of information on the Companies House website https://companieshouse.blog.gov.uk/2018/07/18/choosing-the-right-business-structure/
Unless your business is a separate legal entity, for example a limited company you don’t have to open a separate business bank account. But, separating your personal and business funds is a wise decision, even if you aren’t required to do so.
Mixing personal and business funds can cause you to file taxes inaccurately, become disorganised, and overspend. You may accidentally use business funds to make personal purchases if you combine funds.
One of the first decisions you need to make when setting up your books is deciding how you will record transactions. You can record transactions by hand, hire an accountant, or use accounting software.
Recording transactions by hand is the most inexpensive but time-consuming method and can be prone to making common accounting errors, such as miscalculating or failing to balance accounts.
You can use an accounting software package to manage your books. Using software lets you track incoming and outgoing money and organise your books. With software, you can automate your recordkeeping responsibilities, then hand over your books to an accountant for the more complicated accounting requirements, such as tax preparation.
If you are self-employed you can claim costs in your accounts that are incurred wholly and exclusively for the purpose of your business. You can claim a reasonable proportion of those household running costs that represent the space and time in which your office operation occupies your home. This includes a proportion of your utility bills, rent, council tax and water rates.
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