For many businesses, business accounting is a real nightmare when it comes to reconciling all your receipts and expenditures. You cannot deny the fact that business accounting is a domain that can capitalise all the advantages extended by the modern computing technology and access all innovative applications in the cloud. So, if you are an entrepreneur and want to streamline all your business accounting process, Xero setup is the best software application solution to resolve all your accounting issues.
This software has accessed high patronage among many businesses, especially in the small business domain in many countries. One of its main attractions of Xero setup lies in its way to address to the bank transactions. Xero has the capability to integrate and download bank information very easily and it is of a great help to you when it comes to reconciliation of varied transactions against your business records.
So, if you are one of those businesses who are worried about the time that you need to spend learning a new solution, Xero set up is well known for its easy on-ramp and comparatively quick setup routines. Once this software is installed, then you can handle varied situations of the claimed expenses, bank balances and access a clear report of the payments you must make.
Moreover, it is easy to reconcile all your accounts, even if have dearth of knowledge about the accounting procedures. Once your information is reconciled through using this software, you can analyze it with varied stock report formats and print out something as per your own requirements.
Another area in the business process that calls for the services of expert Tax advisor London is filing your tax returns that can review all your tax documents carefully before it is filed. Most people lack the required knowledge in doing their tax filing exercise and that is where tax preparation services come into the picture. Using a tax preparation service from a professional Tax advisor London is the ideal option to get all your tax filing job in a hassle-free manner, especially if you have more complicated tax returns to be filed. The tax preparation service offered by these experts keep abreast of all the developments in taxes domain so that they can deal efficiently with any issues.
Moreover, these tax preparation specialists are licensed by the federal government and more importantly, they can also represent you, in case there is a problem with your tax return. It is the ideal choice for filing intricate tax returns. All tax preparation professionals should be able to offer references for you to check. From these references, you can confirm the speed of response that are bestowed to their past clients.
Limited companies filing deadlines.
Limited companies have filing deadlines for accounts and tax returns.
Penalties (for private limited companies) for late filing with HMRC are summarised below:
- First accounts with Companies House 21 months after date incorporated
- Annual accounts with Companies House 9 months after year end date
- File company tax return with HMRC 12 months after end of accounting
- Pay Corporation Tax or 9 months and 1 day after Corporation
- Tell HMRC that no corp tax is payable Tax accounting period ends
The penalties (for private limited companies) for late filing of limited company accounts with Companies House are summarised as follows:
TIME AFTER DEADLINE PENALTY
- Up to 1 month £150
- 1 to 3 months £375
- 3 to 6 months £750
- More than six months £1,500
The penalty is doubled if annual accounts are late two years in a row.
Limited companies are required to file a confirmation statement (previously an annual return) with Companies House once a year. The company should receive an email alert or a reminder letter when the confirmation statement is due. The due date is usually a year after either:
- the date the company was incorporated
- the date the company filed its previous annual return of confirmation statement.
The company can file the confirmation statement up to 14 days after the due date, with no penalty.
It can be very difficult for a small business owner to understand several deadlines, Price & Accountants can help you to understand of these deadlines. Feel free to book an appointment with us today by completing contact us form or email: email@example.com or call 020 3735 5119
What is the big picture?
- Economic Forecast
Brexit, most challenging time for small businesses in UK right now, uncertainty is not good for our economy which can also affect small businesses in short and long term. However it will also bring opportunities for smaller businesses therefore get ready.
Government is ready to invest into the Technology, there is £2.5 billion Investment Fund for innovative SMEs. There is also an Investment incentive available for artificial intelligence.
The big headline: Stamp Duty Limits
Up to £125,000: Current Standard rate 0% Rate for first-time buyers 0%
Over £125,000 and up to £250,000 Current Standard rate 2% Rate for first-time buyers 0%
Over £250,000 and up to £300,000 Current Standard rate 5% Rate for first-time buyers 0%
Over £300,000 and up to £500,000 Current Standard rate 5% Rate for first-time buyers 5%
- You will not pay Stamp duty on the first £300,000 on property purchase (first time buyer)
- Between £300,001 and £500,000 the standard 5% will apply
- If your property is over £500,000 this exemption will not apply and will pay standard rates
Personal Tax and National Insurance overview
Personal allowance £11,500 (Now) £11,850 (Next Year)
Basic rate threshold £33,500 (Now) £34,500 (Next Year)
Tax free dividend £5,000 (Now) £2,000 (Next Year)
Dividend Tax! basic rate will be increased to £34,500 which will be taxed at 7.50% savings of £189 (including savings from personal allowances) in the next financial year compared to current year. There would be an additional tax on reduced tax free dividend which will result to an increase in dividend tax of £225. Overall there are no satisfactory tax saving for small business owners in 2018/2019.
Corporation Tax overview
- Main rate of corporation tax remains at 19%, falling to 17% from 1 April 2020
- Freezing of corporate indexation allowance from 1 January 2018
- R&D tax credit increased from 11% to 12%
UK will be very competitive jurisdiction when corporation tax is reduced to 17% (from 2020). Good news for R&D.
Finance for long-term innovation
New £2.5 billion Investment Fund for innovative scale-up SMEs
Double annual allowance for EIS investments in knowledge-intensive companies
- £220 million new Clean Air Fund for local authorities in England
- Vehicle Excise Duty (VED) supplement for new diesel cars from 1st April 2018
- Rise in Company Car Tax diesel supplement from 3% to 4%
- No benefit-in-kind charge for electric vehicles for employees
- Freeze on fuel duty