Often very little consideration is given to the structure of a new venture when in fact deciding whether a new business should be a sole trader or partnership or a corporate body such as limited company are crucial and possibly as crucial as the business you intend to conduct.
Should you start simple - on your own, with the risks and rewards all on you own shoulders or should you share the burden with someone you already know and can work with?
Our sister companies will offer professional advice in the areas of law and financial services - Advice which will be relevant, practical and useful to all who run a business.
Year End Accounts
Many individuals are in employment and pay tax through their employer under the PAYE scheme . Others however, pay in different ways such as self employed individuals, partners in a business and companies themselves.
Failure to manage your personal or company tax affairs properly leads to levels of stress that can affect your business and even your home life and relationships. Penn Accounts can make sure that this does not happen.
By carefully managing your tax affairs, you can be assured that the tax you must pay is paid on time every time and only the tax that must be paid is paid and not a penny piece more. Whats more, in certain circumstances we can also help you to reduce your tax liability by careful planning.
VAT & VAT Returns
For most, the thought of VAT fills them with dread.
Individuals also often misunderstand that the receipts of VAT are simply passed on to the tax authorities and not a source of income to your business.
Either way, VAT issues require superior handling the VAT authorities (HMRC) are not the kindest organisations and that makes VAT compliance issues that much more important.
Time and time again we act for companies that are sound, which in fact suffer horrendous consequences or even fold because they receive a high VAT bill that they had not anticipated and are completely unable to pay.
As a business owner it is your responsibility to make sure you keep accurate records and accounts. Businesses need accounts for two reasons:
a) To enable the owners and managers of the enterprise to manage, control and assess the performance of the business
b) To satisfy the tax authorities that they have paid the right amounts for each tax
At its simplest you will require a cash book to record all receipts and payments. If you give credit you will need a sales ledger to keep track of all invoices raised and when you receive payment. If you buy on credit a purchase ledger to keep track of the amounts you owe your suppliers.
If you employ staff, you have to arrange for their salaries, and bonuses and commissions to be paid at the end of the week or month or year. You also have to deal with sick pay, maternity pay, student loans and incentives like Child Tax Credits and so on.
This means that you need to be familiar with all the current laws and tax rules so that you do not over pay your staff for obvious reasons, but also do not under pay your staff so that they do not take you to court for an unlawful deduction of wages.
Employing such a specialised staff member who is up to date on all the current rules can be costly and time consuming especially now with RTI in place requiring submissions of PAYE on a real time basis.
Taking the headache out of your payroll issues.
More and more people are subject to self asseseements. Many try to undertake the process themselves which can be so time consuming and daunting. Some prefer to instruct a so- called accountant to complete the assessment for a few hundred pounds.
Both options are fraught with difficulties.
Trying to prepare your assessments can lead to substantial errors which, if under reported, can lead to substantial penalties and fines.
Using small so called accountants to prepare the returns invariably means that they are ill equipped to minimise your tax laibailities and offer sound advice.
It makes sense, to save the additional grief by instructing us in the first place doesnt it ?