Articles in the featured Category
Since the introduction of the Dividend Allowance and the Interest Allowance in 2016, compounded by the new Scottish rates of tax in 2017, there is no easy way to work out the optimum pattern of salary and dividends for directors of small UK companies.
Here’s a rough guide to what you might want to pay yourself and what sort of personal income tax reserve you may need to keep. Remember, that this is in addition to your company preparing its own corporation tax reserve. A company can only pay dividends from …
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 …
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. …
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 …
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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 …
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?
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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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 …
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.
Client reference number
Tax year or
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 …
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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 …