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annual, routine »

[15 Dec 2016 | Comments Off on Can my company claim a Christmas party allowance? | ]
Can my company claim a Christmas party allowance?

There is no specific tax deduction for a “Christmas party” but HMRC does allow a measure of tax relief for “an annual event”.

Generally, staff entertainment is considered as a “Benefit in Kind”, and directors and employees need to pay tax and national insurance on the amount of the benefit.
Here’s the one way to avoid a “Benefit in Kind”.  As a company director, you are entitled to provide an annual event for yourself, any staff you employ, and your partner, and reclaim the costs against the company. Proved that the cost …

featured, routine »

[8 Apr 2016 | Comments Off on Director shareholder payments 2016/17 | ]
Director shareholder payments 2016/17

In the good old days there was an easy way to work out the optimum pattern of salary and dividends for directors of small UK companies. With the advent of the Finance Bill 2016 the situation has become hopelessly complex and that prompted AccountingWeb to publish a critical blogpost. Here’s the first bit with the all important table:

If you want to see the blogpost in full you’ll have to sign up for membership of AccountingWeb. It’s a free resouce for accountants!
And, as we said in our 30 Nov 2015 blogpost, …

getting things done, routine »

[14 Mar 2016 | Comments Off on Meal allowances | ]
Meal allowances

It’s long been a policy of ours that all employee expense claims (and directors’ expense claims) should be supported by receipts, proving that the relevant expenditure has taken place, and that the employee’s claim is for a legitimate business expense. That’s set out in our guide:
Claiming back expenses from your own Limited Company
We don’t need to see every receipt from Pret a Manger for £2.99 sandwiches, but we want the reassurance that you the client make a point of keeping your staff (and yourself) within the rules.

So, here is something …

routine »

[7 Apr 2015 | Comments Off on Director shareholder payments 2015/16 | ]
Director shareholder payments 2015/16

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

routine »

[1 Feb 2015 | No Comment | ]
Dividend Vouchers

The retained profits generated by UK companies of all sizes can be distributed to shareholders. For professional workers (such as contractors, consultants, and freelancers), dividends make up the bulk of income drawn down from small limited companies.

If a limited company has made a profit, it is free to distribute these funds to its shareholders. This is the money the company has remaining after paying all business expenses and liabilities, plus any outstanding taxes (such as Corporation Tax and VAT). Even if the year end has not yet been reached, quarterly …

routine »

[14 Apr 2014 | No Comment | ]
Director shareholder payments 2014/15

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

routine »

[8 Nov 2013 | No Comment | ]
What’s wrong with online accounting software?

Since 2005 when we were first introduced to NetSuite, we have had a look at all of the major online accounting packages. There is nothing particularly wrong with them if you’re a bookkeeper.
If you’re not a bookkeeper, then you either need to get yourself trained up as a bookkeeper before using any of the online accounting packages, or simply don’t use them!
Alternatively, you could look upon these packages as being a glorified invoice generator and then give the records to a real bookkeeper so that the job can be done …

routine »

[29 Oct 2013 | No Comment | ]
What should I do about foreign currency expense receipts?

If you’re an international traveller we recommend that you use your business bank account and your business credit card for all business activity. If you really have to use personal cash or a personal credit card for business costs, then you will need to prepare a separate claim form for each currency involved. It therefore makes sense to keep business items business and personal items personal and you wouldn’t need to do this exercise.

If you wish to add your own conversion rates and show the column totals in GBP you …

routine »

[22 Oct 2013 | No Comment | ]
How do I get PayPal to show my running balance?

Part of our records collection process asks businesses with PayPal accounts to prepare a clear concise statement in the same way that your High St bank gives you a statement. The problem is that PayPal doesn’t make it easy. What they give you (by default) is an activity report and not a bank statement. The activity report normally has duplicate entries  for the same transaction and it’s impossible to work with!
Here’s how we do it. Please prepare a statement for each currency for the period you’re working on. When  the …

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. …