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[31 Mar 2019 | Comments Off on Director shareholder payments 2019/20 | ]
Director shareholder payments 2019/20

If you wish to follow the small salary big dividend method of rewarding yourself from your own company, this simple guide can help.
As a matter of routine, your company should prepare its own corporation tax reserve. You will probably need to prepare a personal income tax reserve as well. A company can only pay dividends from the company’s post tax profit. If you have no profit then you can pay no dividends. Do not pay out all of the profit as dividend, only the post tax profit. That means that …

featured, one offs »

[22 Jan 2017 | Comments Off on Public Sector Bodies and Freelancers and IR35 | ]
Public Sector Bodies and Freelancers and IR35

On Saturday 21 Jan 2017 the National Audit Office in Victoria opened its doors to a range of geeks and devotees, both within and beyond Government, for the now annual unconference called UKGovCamp. This one was special, the 10th event, and there was a considerable buzz among the 220 participants.
Somehow, my session ended up in a very early slot (one of eight concurrent streams) and a small, intense discussion of IR35 took place.
This is an extremely complex subject. I have recently concluded an IR35 enquiry for a client. It took …

featured, routine »

[3 Aug 2013 | No Comment | ]
Keeping proper business records

1.      Keeping business records – the full story
1.1.   This system is designed to help you keep things as simple as possible.
1.2.   At the same time, it is designed so that it works with almost every bookkeeping system and every accounting system there is. You can generate your prime records (invoices etc) using Word or Excel or similar applications, and you can store your records on DropBox. That way, we can both find what we need, when we need it.
1.3.   We use specialist software which only accountants would want to buy. …

featured, routine »

[8 Feb 2012 | No Comment | ]
The Senior Manager Test

When judging whether you can reclaim an expense from your own limited company use the Senior Manager Test. It assumes that you have already understood what is a business expense.

Let’s assume that you are now the CEO of a really big organisation with over 1,000 imaginary people and you have about 10 mythical senior managers to help. And they all have expense accounts like yours, and they all like to claim the same sorts of things that you do. If all ten of these senior managers submitted reimbursement claims to …

featured, one offs »

[29 Jul 2010 | No Comment | ]
A “VAT only” invoice

You can link directly to this article using the short URL http://bit.ly/drPF7S

A one off process when the VAT details arrive late

There are times when an application for VAT registration is delayed, and in a few cases that can mean that your business ought to have charged VAT to customers but couldn’t, because the VAT registration number was not known.

In situations like these, it is necessary to issue a “VAT only” invoice as soon as your registration number is known. There are three examples of invoices on this Excel file …

featured, routine »

[6 Apr 2010 | No Comment | ]
Payroll in partnership with @payroll140

Concise and to the point

In conjunction with our sister organisation @payroll140 we can now offer a monthly payroll service . . .
Click here for details
Is your payroll bureau 100% paperless? Payroll140 is! Everything is done by email, Dropbox and PDF.
This is an example of the sort of PDF payslip that gets e-mailed directly to staff members, or in a batch to the HR manager. Would that help your business?

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[2 Jul 2009 | No Comment | ]

Paper or electronic
We are happy to accept your records in either paper form or as a collection of digital files, but not both. In order to ensure that there is no duplication of income or expenses, we would ask you to choose either one method or the other.

Paper – Please do not send hard back folders or lever arch files. Documents may be sent to our London office where the majority of records are processed. Proactive, Unit 115, 155 Minories, London, EC3N 1AD.

Electronic – We can accept electronic files in …

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[24 Jun 2009 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/8qVdxm
A Mix of Paper and Digital Files
How do we do it? We have a hybrid system! Yes, all of our own internal procedures are paperless. And yes, there’s still a lot of paper going through the system. Many government departments still need things on paper, and most of our clients prefer to send us paper. So we are a hybrid!
We submit accounts and tax returns electronically, and we still use old fashioned pigeon holes to handle client records. What …

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[24 Jun 2009 | No Comment | ]

File Naming Convention
Proactive operates a paperless system and that means we need a strict file naming convention. Every file name is unique and the various collections of numbers each serve a different purpose. That way we can find any document quickly.

20121031 1700

tax return

Client reference number
Document code
Tax year or
Trading year
Creation date and time


A number of our clients have asked for more details and so here’s a basic summary:
Every client has a 10 digit reference number.
Every document type has a 6 digit number code.
All dates are shown as 8 digits, in scientific …

featured, one offs »

[8 Jun 2009 | One Comment | ]

You can link directly to this article using the short URL http://bit.ly/7M4H7H

Doing things electronically – VAT on line

As a result of Government initiatives, particularly in 2007, a number of services can be accessed over the web provided that you have a Government Gateway username and password. It’s often a two tier system which relies on first having a Government Gateway account and then subscribing to other services.
Setting up a Government Gateway Account
Visit http://www.gateway.gov.uk/ and select Register.
It will take a few days to have everything in place and for confirmation to …