Questions Frequently Asked of Ed
Questions we get asked every day
Very easy, our team will take care of everything for you. We will contact your current Accountants for professional clearance to take over handling your affairs and requesting the necessary handover information. We will complete a authority form for you to sign for HM Revenue & Customs to let them know of our involvement.
The simple answer is no. At Edward Lowe Accountants we develop a good working relationship with our clients and understand their business and its requirements. Telephone advice and support is FREE, we will only charge if we have to go away and do something.
Take advantage of a FREE initial consultation from Edward Lowe Accountants.
We will listen to your plans then advise on what format the business should take, the bookkeeping records you should keep and what business information you need to register with Companies House, HM Revenue & Customs etc. After the meeting we will send you a Fixed Fee Quotation covering both the ˜one offfees of setting up the business and our ˜on goingannual fees. There is no obligation for you or cost from this meeting.
All services provided by Edward Lowe Accountants are based on a Fixed Fee Quotation provided before we commence the work. This way our fees are totally transparent, there are no hidden costs.
Company Accounts have to be filed at Companies House nine months after your accounting year has ended. We will send you a reminder one month before your accounting year end. This will include a Checklist of the records/information required with a request we receive them no later than one month after your accounting year end. This gives us some time to do some pre year-end tax planning, keeps you affairs up to date and ensures you know how much tax is due long before the date for payment. Corporation Tax is due 9 months and a day after the company s accounting year end.
Income Tax is paid on the 31 January following the tax year in which your accounting period ended. For example, if your accounting period ends on the 31 July 2012, this falls in the tax year 2012/13 which ends on the 5 April 2013 and the tax is due 31 January 2014. If your tax liability is greater than £1,000 you will need to pay payments on account for the tax year 2013/14, half on the 31 January 2014 and half on the 31 July 2014.
The answer is a mixture of both. If you have no other income other than from your company you should pay yourself a salary up to the top of the Nil Band for National Insurance, £624 per month for the tax year 2012/13. This is the maximum you can pay in salary without incurring a liability for National Insurance. For every £1 paid in salary above this amount you would pay 12p employees NI and 13.8p employers NI. Whilst you do not pay any NI as your salary is in the Nil Band rate you get all the benefits as though you had paid NI, a credit for State Pension and an entitlement to Sick Pay. Any payments above £624 per month should be taken as Dividends. As Dividends is deemed to be paid to you net of basic rate tax you should put aside, on a bank deposit account within the company, the equivalent of 25% of the amount drawn to pay the Corporation Tax at the end of the year. If there insufficient funds to do this you are taking too much money out of the company.
Unfortunately you can’t get a tax deduction for this payment to your landlord, as a fee to release you from the continuing obligation to make payments under the lease is regarded as a capital payment. There is also no tax relief for this payment under the capital gains tax rules as it doesn’t represent a cost of purchase or a cost of disposal of an asset. So for you it’s a “tax nothing”.
The Taxman has recently set-up a really helpful page on his website www.hmrc.gov.uk/bankaccounts which lists alphabetically all the taxes and charges it administers. When you click on the name of a tax or charge, the website tells you how to pay, including the bank account numbers and how to check you have the correct reference.