When should I hire an accountant ?
From the starting of your business, you should chose an accountant. It does not have to be costly. You can hire an accountant on ad hoc basis. There are many accounting firms in ilford and London which provide consultation on hourly basis.
What is the New Furlough Scheme from November 2020 ?
From 5th November 2020 announcement new job support scheme has been put on hold and Furlough scheme which was running from March 2020 has been extended to 30th March 2021. Employee who were on payroll on 30th October 2020 can be put on this scheme.
How much does the New Furlough Scheme funds ?
New Furlough scheme funds 80% of your wages, your employer only need to pay NI and pension and does not need to contribute any other money, however they should agree with you 20% deduction from your pay if they only want to pay the furlough amount.
When should I file my tax return or self assessment ?
Self assessment and tax return become due on 31st October for paper filing and 31st January for electronic filing following year ended 5th April .
It is advisable to file your return as soon as reasonably possible as Ilford Accountants provide good discount if returns are submitted early.
If you reporting capital Gain tax return, with new rules from April 2020, you should report any capital gain on property within 30 days of completion.
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What is the minimum pay in 2020/21 ?
Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2020 rates £8.72 £8.20 £6.45 £4.55 £4.15
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April 2019-March 20 £8.21 £7.70 £6.15 £4.35 £3.90
What is the help available for self Employed November 2020 Covid-19 ?
Self employed income support scheme also has been extended now self employed are able to claim 80% of their monthly profit. The claim can be made online and HMRC automatically calculate the grant amount. Accountants are not allowed to make claim on your behalf, however they can provide you guidance.
How to register a Business ?
There are many types of business structure. Mainly, more than 80% of people start as sole trader/self employed in UK. You only need to register for UTR and you are ready to go. Once your business up and running you can decide if you would like to registered as partnership, LLP or limited company.
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You always have to option to transferring from sole trader to ltd company. It is advisable to seek a legal advice or talk to an Accountant who can guide you what is the best structure for your trade.
How long does a ltd company gets to file their annual accounts ?
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It is 9 months from the year end date. In 2020, due to Covid-19 there is 3 months extension provided which gives 12 months to file company accounts to company house. However, for corporation tax you have 12 months from the year end date to file CT 600 to HMRC.
Where can I find my UTR number or NI number ?
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UTR number can be found on documents issued to you by HMRC such as
* Tax File Reminder
* UTR registration letter
* SA 100
* SA 302
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Similarly NI can be found on most of the above documents plus it is also
available on your Pay slip, P60 documents.
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You can also request HMRC to resend your UTR and NI number.
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I own small business and earn less than £1000, do I need to pay tax or register with HMRC ?
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No, you do not need to register or file tax return to HMRC. HMRC has introduced new rule few years ago, any business whom trading income is less than a £1000 do not need to register or file tax return.
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If you earning is more than £1000, you have to register and file a return, however you can elect £1000 as deductible allowance or chose to deduct actual expenses.
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When is the best time to file tax return ?
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April to December is a best time to file your tax return as you can find discounted price. However, as January 31st is deadline for filing return and most accountant will be busy during this time and you will not get any discount.
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Couple landlord renting property and want to save tax ?
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Couple, where one of the spouse is working and another one is not working or not earning more money than other, they can create a trust deed where the income from the property will be taxed on the individual in a proportion as they chose such as 90 percent to one and 10 percent to other.
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This can save hundred of pounds where one spouse higher rate earner and other is on basis pay/not working.
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What is marriage allowance ?
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If one person earns more than 12.5k and less than £50.00 and spouse earn less than £12.5k. Spose earning less than personal allowance can transfer 10% of personal allowance to spouse who is earning more than 12.5k which can save tax/tax rebate up to £250.00
What can you claim as expenses if you are self employed security Guard ?
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Being a security worker often means you have to wear specific clothing/uniform and have specific safety gear. If you purchased the clothing yourself and pay to maintain it such as dry cleaning etc., you can claim a tax refund. Below are few allowable expenses
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Uniform cleaning costs
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Repairing work clothes
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Replacing work clothes
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Uniform upkeep (dry cleaning)
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Business Phone (Landline or mobile)
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Use of Home as office
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Advertising
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SIA License Renewals
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Administrative costs
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Accountant Fees
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Any work-related equipment cost