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Managing the company accounts is rarely at the top of a business owner’s “love to do” list. It can be frustrating and rob you of valuable time that could be spent improving and developing your business. The services of an external accountant are a lifeline for around 91% of small businesses in the UK (source ICAEW), but does your limited company need to have Accountants For Limited Company? There is no legal requirement for limited companies to use an Accountants For Limited Company, but it is very beneficial. They can perform valuable services like filing annual accounts and corporation tax returns. They can also offer business advice and devise efficient strategies to save your company money. If you are not sure you need an Accountants For Limited Company, please read on to find out how Account Ease can take hours of number crunching, form filling and box ticking off of your hands, and let you get back to running the business you love. What can an accountant do for my limited company? If you’ve ever dreamed of more time in your day, having a professional accountant handle your finances is akin to letting the genie come out of bottles. Plus, there’s possibility of more than three wishes. Here’s a sample of some of the beneficial solutions accountants can provide to your small business. Setting up a new company Your accountant can register your business with Companies House if you wish to save time and hassle in those important formative days. They’ll also give you the lowdown on your new tax liability and liaise with the fine folk at HMRC regarding tax registration. Payroll In larger companies Payroll is typically handled in-house. However, for smaller companies, it’s best to delegate it with an accountant. Or, you can say goodbye to the hours of your day being buried in calculation along with HMRC paperwork. Luckily, accountants who are good have also become payroll experts who love this type of work (each on their own). VAT If these three words (VAT) fill you with fear, you’re not alone. VAT can be a bit confusing and the rules are constantly changing. A professional accountant can help to navigate your company’s tax obligations and help you choose the best arrangement for payment so that you don’t more than you should. They can also make easy task of the annual VAT return and make sure that you don’t face unanticipated penalties. Bookkeeping Daily bookkeeping is the foundation of a sound managing finances… As it can be tedious, time-consuming and boring Let’s face it. Invoicing every receipt may feel like a chore and, at the year-end (or when HMRC is knocking) it is not a good idea to search to find missing receipts or transactions. Fortunately, accountants are meticulous, and are able to handle your bookkeeping with absolute efficiency, which will free your time and energy. Tax return In addition to submitting your annual financial statements and financial statements. Your limited company has to complete a tax return on behalf of the company at the close of the financial year to disclose its taxable profits and to calculate your corporation’s tax liabilities. The most important information to be included is a profit/loss statement and, to make it enjoyable. You can choose you can choose a different one from that included in your annual financial statements. Beginning with the statement of profit and loss then the amount must be adjusted to reflect the income taxable. This is accomplished by reversing the disallowable expenses as well as accounting for allowances to capital arising from capital expenditures, among other items. The paperwork may be overwhelming It is possible to be overwhelmed, however it is possible to have an accounting professional can create your tax return for corporations on your behalf and determine the amount due. They must also send you regular reminders of when your tax due date is. What is the ideal moment to obtain an accountant for a limited company? The proverb (almost) suggests that the ideal moment to engage an accountant is right now. The next ideal time to hire one is today. An accountant who is competent can bring value from the beginning, offering expert advice to start your business off on the beginning. A lot of business owners seek out an accountant when the end of the year arrives. But it is generally better to get an accountant in place prior to the end of the year. This way, your financials are in order and you’ll have a clear idea of your tax liabilities so that you don’t get unexpected expenses. Certain proprietors are more proficient in the field of accounting than others and have more authority. However, while it’s appropriate to manage your own financials but as your business grows accounting becomes more complicated and time-consuming, particularly if you decide to hire employees. While keeping one eye at your day-to-day operations and the other one on how much cash you have, the things could quickly go wrong. Payroll administration can be extremely time-consuming and it’s easy to forget about costs and unpaid invoices. With the assistance of a professional, your accounting is much easier and precise and, of course, more cost-effective. Why should I pick Account Ease as my limited company accountant? Your company and you both should have every chance of success. The right Accountants For Limited Company will give you the financial confidence you require to succeed. Account Ease has won multiple awards and has extensive experience in small-scale business accounting. Our staff is a friendly and friendly group and you can be assured of excellent customer service. We recognize there are many who don’t get enthusiastic about accounting as we are. That’s why we break down the jargon and try to alleviate the stress of completing your financial obligations. We will not only manage your company’s accounts as if we would the ones we had. We’ll also look for ways to reduce costs for you. You might be amazed at the cost-effectiveness of the use of professional accountants can prove. Contact us today

Within the modern day, it is no surprise that more people opt for working as a freelancer or a sole trader, particularly in the context of BOOKKEEPING SERVICES IN UK. The promise of better work-life balance, control over workload, and increased earning potential are large factors contributing to this shift in employment. However, working as a free agent produces new concerns and challenges; mainly related to getting paid. In general, freelancers rely on multiple different clients, which can make it difficult to manage finances and keep track of payments. This may be daunting for some, and so it is recommended that one of the first steps a freelancer should take is to hire a freelance accountant to ensure good accountancy is maintained from the beginning. In addition, accountants can provide you with valuable tips and even recommend useful applications, which will be integral to you developing organized records, such as online accounting software such as FreeAgent, xero, sage and QuickBooks. The Importance of Bookkeeping for Freelancers Bookkeeping is an essential skill that provides an instant overview of your business, especially when changes occur regularly. Many freelancers opt to hire expert accountants to manage central records, ensuring financial stability. Advantages of Updated Accounts While maintaining precise accounting may seem time-consuming, it facilitates quicker payments. Thorough books help freelancers track payments efficiently and stay informed about the financial state of the company. Easy Tips for Effective Bookkeeping Set Up an Organized System Choose a suitable accounting program like FreeAgent, xero, sage and QuickBooks, offered in comprehensive accounting packages. Regular Record Updates Dedicate time each week to update records manually or use accounting software to track expenses and payments. Customized Invoice Emails Utilize FreeAgent, xero, sage and QuickBooks to create and send personalized invoice emails to each client. Set up reminders for overdue payments. Identify Late Payers Leverage aging reports to highlight overdue invoices and quickly identify problematic clients. Track Key Business Aspects Use accounting software to record operational hours, client hourly rates, business costs, and payments. Expense Offset Against Tax Keep accurate records of business-related expenses to offset against taxes. Consult a professional accountant for complex tax laws. Set Aside Tax Payment Freelancers should set aside money for tax payments, as it is not automatically deducted. Work with an accountant or use software to determine the correct percentage. Account Ease – Your Specialist Partner Account Ease is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution. For more information, contact our New Business Team at 0208 133 4599 or email askus@account-ease.co.uk

Chancellor Jeremy Hunt has delivered the Autumn Statement 2023, announcing tax and rates changes which affect the self-employed, business owners, employees and employers. The updates are rolling out at various stages, though some can be expected to start at the beginning of the new tax year in April 2024. • Business rates • Full expensing • National Living Wage and National Minimum Wage • Employees and employers –  National Insurance • Self-employed people –  National Insurance • R&D tax relief changes Business rates The previously announced support package to help those paying business rates will continue, with Hunt saying he will extend the 75% discount on business rates up to £110,000 for retail, hospitality and leisure until 2025. The Chancellor will also freeze the small business multiplier for a further year, although the large business multiplier will not be frozen. Full expensing update for businesses Full Expensing (FE) is a type of first-year capital allowance which permits companies to deduct the full amount of any spending that qualifies from their taxable profits in the year the expenditure occurs. Originally announced as a temporary measure in the Spring Budget 2023, Full Expensing has now been made permanent. National Insurance – employees and employers Although the thresholds for National Insurance will remain frozen until April 2028, the main rate of Class 1 National Insurance payable by employees on their wages between £12,570 and £50,270 will reduce from 12% to 10%. National Insurance for employers remains unchanged, although employer’s NI relief for veterans is extended by one year, and the £5,000 Employment Allowance will stay in place. 2023/24 and 2024/25 Class 1 (Primary) National Insurance thresholds and rates for employees 2023/24 Weekly Threshold 2023/24 Annual Threshold 2024/25 Weekly Threshold 2024/25 Annual Threshold Lower Earnings Limit (LEL): Employees earning less than this limit won’t incur National Insurance, or accrue benefits such as qualifying payments towards their State Pension. Earnings which are more than the threshold, but below the Primary Threshold still won’t incur NI, but employees will earn NI ‘credits’, and accrue NI benefits. £123 £6,396 £123 £6,396 Primary Threshold: Earnings above the Primary Threshold up to (and including) the Upper Earnings Limit incur National Insurance at the following rates: 6th April 2023 – 5th January 2024: 12% 6th January 2024 – 5th April 2024: 10% 2024/25: 10% £241.73 £12,570 £241.73 £12,570 Upper Earnings Limit (UEL): Earnings above the Upper Earnings Limit: incur NI at: 2023/24: 2% 2024/25: 2% £967 £50,270 £967 £50,270 National Insurance – self-employed people As a self-employed person you’ll make National Insurance contributions based on the profits you make above the National Insurance threshold (so don’t forget to claim tax relief on your expenses!). There are two types of self-employed National Insurance: • Class 2 National Insurance is a weekly flat rate. This will be abolished from April 2024 • Class 4 National Insurance is a percentage of your self-employed profits. From April 2024, Class 4 NI reduces from 9% to 8% 2023/24 Annual Threshold 2024/25 Annual Threshold Profits in this range don’t incur National Insurance, but you can make voluntary contributions if you want to. £0 – £6,724 £0 – £6,724 Small Profits Threshold (SPT): Profits between this and the Lower Profits Threshold (LPT) don’t incur National Insurance, but you will accrue National Insurance credits. £6,725 £6,725 Lower Profits Threshold (LPT): In 2023/24 you’ll pay Class 2 National Insurance at a flat rate of £3.45 per week once profits reach the threshold. Class 2 National Insurance will be abolished from April 2024 onwards. 2023/24: £3.45 per week 2024/25: Abolished £12,570 Abolished Lower Profits Limit (LPL): You’ll start paying Class 4 National Insurance on earnings above this threshold at a rate of: 2023/24: 9% 2024/25: 8% £12,570 £12,570 Upper Profits Limit (UPL): Self-employed profits above this threshold incur Class 4 National Insurance at a lower rate: 2023/24: 2% 2024/25: 2% £50,270 £50,270 An increase to National Living Wage and National Minimum Wage from April 2024 The National Living Wage is the minimum amount employers must pay to someone who is aged 23 or older, and not in the first year of an apprenticeship. The Chancellor’s statement announced that as of 1st April 2024: • National Living Wage will increase from £10.42 to £11.44 per hour • The rate will also apply to those aged 21 and older (who currently must receive National Minimum Wage at a rate of £10.18) Though they sound similar, the National Living Wage and minimum wage are different. The National Minimum Wage (NMW) sets the minimum hourly rate which employers must pay younger employees and apprentices. These rates will also increase from 1st April 2024 although the amounts have not yet been set. R&D tax relief changes Hunt announced a planned simplification of the current Research and Development (R&D) system, merging the existing R&D Expenditure Credit (RDEC) and SME schemes from April 2024 onwards. The Chancellor also confirmed a reduction in the ‘intensity rating’. This refers to the proportion of expenditure that loss-making businesses must spend on R&D activities in order to qualify for additional relief in the form of a 10% cash credit. Under current rules, R&D must account for 40% of a loss-making company’s spending to qualify, but this will reduce to 30% for accounting periods that start on or after 1 April 2024. There will also be a grace period for companies which dip below the 30% threshold, allowing them to continue receiving relief for one year. How Account-Ease Can Help You As the UK’s most trusted accountants, we can help you make sense of the Autumn Budget and how it could impact your business. Our accountants are on-hand to answer any queries you have regarding the Budget, your business accounting, tax optmisation, compliance and much more. If you need an accountant that you can trust with your finances, Account-Ease have specialists in your field. For expert advice, speak to an accountant on 0208 133 4599.  

Sole trading has emerged as a popular business option in the UK recently. According to statistics, there are 5.6 million private sector businesses, with 3.2 million being sole proprietorships. The number of sole traders is rapidly increasing in the UK. Despite the positive outlook presented by these statistics, the dedication and efforts that sole traders invest are noteworthy. This is where the significance of Accountants For Sole Traders comes into play What is a sole trader? Before we begin, let’s be aware of the meaning of the word “sole trader” is. Accountants For Sole Traders is the person who is running an entire company, which could also be referred to as self-employment. One person is wearing many hats, including the owner of the business, the leader, accountant, the sales manager, marketing manager and any other hat necessary to run a company. This person will get all Profits from business after having paid tax. This is the reason why sole trading is unique. But, they are also responsible for any loss and are responsible for the burden on their own. Sole traders are among the most straightforward business structures available in UK. It comes with its own tax rules that are set by HMRC and requires a specialized sole trader accountants to make sure they comply with all regulations. Does a sole trader need an accountant? So, a sole-trader is in charge of every aspect that they run their company, which can make them tired sometimes. Additionally, If the individual has a problem with numbers, there are many chances of making mistakes when working and they aren’t able to afford to make mistakes. It’s one of the main reasons to hire an accountant who is specialized. You’ve probably heard that those accountants who work for sole trader offer customized services for sole traders and this is a particular area that they are experts in. Giving them the task can bring a sense of peace for sole trader owners. They can concentrate in other areas of their work without rushing at the computer. There are additional benefits of employing accountant for sole traders who is expert in filling tax returns. Are you planning to start sole proprietorship? ensure you study this complete article. 1.Get the basics right With the internet in your hands, you can know everything about  starting the business   , but what about the taxes part and the business jargon you aren’t aware of or familiar with? Internet has enabled any kind of information easily accessible however, it can be confusing and could confuse anyone who is new to this area. If you’re trying to understand the basics right and get your finances correct, you’ll need a seasoned accountant. There’s a particular process to get you set up to be a sole-trader. Thus, seeking help from an experienced accountant is crucial. They can handle the business’s setup as per HMRC regulations. 2.Recording the money After you’ve completed the basics and you are ready to move on to the business. The flow of cash is essential to manage and growing a business. It is essential to record the cash outflow and inflow accurately. There are two options for recording transactions: accumulation and the cash. With the cash method you keep track of transactions once cash is received or paid, while with the accrual method it is recorded whenever they occur. There is a method that you can choose to use for standard accounting, and the other to calculate VAT only. This may sound complicated however, it could bring benefits for cash flow advantages if you provide an extended credit period for customers. A single mistake on the tax filing could lead to massive penalties. This isn’t something companies can afford. In addition Taxes must be filed prior to the timeframe that is set by the government or else you’ll be fined. While you attempt to keep track of all the transactions, submitting taxes will not be simple. It is important to understand that tax is a tangled topic as well. UK includes one of the tax laws with the longest length around the globe. Accountants have to learn for years these tax rules and working more work to comply with the HMRC regulations. They are professionals who have an understanding of what they should do and not to do. Making the investment in an sole trader accountant service is the most efficient and the most convenient method to get your taxes completed. 3.No need to research terms Understanding certain terms and financial documentation It can be a hassle and time-consuming process and difficult if you do not come financially savvy. You have to do ample research. An accountant is acquainted with these terms and documents. They can complete the forms in a short time and help you comprehend these terms with no amount of study. Tasks sole trader accountant will do for you An accountant can help the sole trader with various tasks. If you hire one right when you start the business, they will guide you through different situations. 1.Self-assessment tax return You must file a tax return  you earn more than £1,000 during the tax year. You need to sign up with HMRC to self-assessment, get a UTR for your business, create profits and loss workings as well as calculate deductions and submit your tax return before the deadline. A sole trader accountant will assist you in the registration process and after a fiscal year is finished the accountant will file your taxes for you without worrying about the tax. HMRC has deadlines for filing these taxes and you must adhere to them completely. 2.Contribute to national insurance Self-employed, like employed people or sole traders can also contribute in the National Insurance. There are two kinds of National Insurance Certificates: Class 2 NIC and class 4 National Insurance Card. Class 2 NIC – A sole trader is required to pay £3.05 per week when they earn more than £6,515 in their tax-year. Class 4 NIC: A sole trader is liable for 9 percent of their earnings per year between £9,568 to £50,270 plus an additional 2% when they reach the profit threshold. 3.VAT The threshold for

A Self Assessment tax return can look daunting. But if you’re prepared, organised and understand what you’re being asked for, it’s a lot simpler than it looks. Make sure you understand the form so you can file it correctly and avoid paying any penalties. Do I need to fill in a Self Assessment tax return? Yes, if: Your self-employment earnings were greater than £1,000 (before subtracting everything you are entitled to claim tax relief for) the rent you received from renting out your home exceeded £2,500 (you’ll be required to inform HMRC when it’s in between £1,000-£2,500) You made more than £2,500 in income that was not taxed, for instance from commissions or tips your your savings and investments was more than £10,000 or more prior to tax You are required to you must Capital Gains Tax on profits from the sale of items such as shares or even a second house you are a director in the company (unless it’s an non-profit organization like a charity) you or your partner’s earnings were greater than £50,000 and you’re entitled to Benefits for children. Benefit If you earn money from abroad that you have to pay tax on, or reside in another country but earn an income that is in the UK Your taxable income was greater than £100,000 If you earned more than £50,000 during the tax year and made pension contributions, you may have to submit an assessment in order in order to claim back the additional tax relief you’re entitled to you’re a trustee in an trust or a registered pension scheme Your State Pension was your sole source of income. It was greater that your individual allowance You received a letter from HMRC that said you didn’t pay tax enough the previous year. National Insurance contributions You can also file an Self Assessment tax return if you wish to make the voluntary class 2. National Insurance contributions. This will allow you to get benefits like state pensions. It is not necessary to submit the Self Assessment tax return if you’re an employee that has made tax payments through The Pay As You Earn (PAYE) program. This is the case unless you earn more than £100,000. How to register for a Self Assessment tax return If you’ve never filed returns before you’ll need to sign up to take the Self Assessment. There are a variety of methods to register if you’re self-employed, but not self-employed and must declare your income, or if you’re an association. After you’ve registered, you’ll be notified of the Unique Taxpayer Reference (UTR). If you’d like to complete the Self Assessment form online, you’ll need to create an account on the Government Gateway account. To set up this account follow the steps on the form that comes with your UTR. After you’ve created your account, you’ll receive an activation code within the email. After that, you’ll need to finish the configuration to set up Your Gateway account. If you’ve previously submitted Self Assessment tax returns before you’ll require to previous UTR to sign up and open the account. It is recommended to ensure you have access to your Gateway account prior to attempting to complete the Self Assessment. This can save time if in any way you are unable to log in. What are the Self Assessment deadlines? You submit tax returns for tax years, not calendar years. And you do this in arrears. For instance for the 2022/23 tax year, which runs from 6 April 2022 through 5 April 2023 will: You must sign up to participate in Self Assessment by 5 October 2023, if you’ve never filed your return prior to that date. complete your tax return by midnight, 31 October 2023 if you are you are filing your tax return on paper File your tax return by midnight on January 31, 2024 if you are you are filing online You must pay the tax due before midnight on January 31, 2024. If you don’t meet any times, these dates are due. You may be liable for a penalty as well as interest on late payments. What information will I need to fill in a Self Assessment tax return? If you’ve never filed an self assessment tax return prior to it might seem a bit intimidating. If you’re familiar with the process, it’s easy, provided that you have all the data that you need. Before you start, be sure you’ve got the following: your ten-digit Unique Taxpayer Reference (UTR) Your National Insurance number Information on your income that is not taxed from the tax year such as self-employment earnings, dividends, and interest on shares the records of any expenses related to self-employment any donations to charities or pensions which could be tax-deductible P60 or any other record that shows how much you earned on which you’ve already paid taxes on. It’s an excellent idea to go through the relevant HMRC help sheets, specifically on the additional sections (called extra pages) which relate to the reason you’re filling in your Self Assessment tax return