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[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 …

routine »

[8 Feb 2012 | No Comment | ]
What is a business expense?

In order to establish what is a business expense, first we need to know “what is a business”?

A business is “an activity which is earnestly pursued with the objective of making a profit” as set out in the case of Customs and Excise Commissioners v Lord Fisher 1981.
And so it follows that a business expense is a cost which is incurred in order to increase the chances of that activity making that desired profit. If the primary purpose of incurring an expense is not to help the business to make …

routine »

[8 Feb 2012 | No Comment | ]
I cannot afford to pay a salary

In the early days of a business, it may be advisable to pay yourself a small salary, even if your company cannot really justify the cost. The reason is tax relief. And, as tax reliefs are linked to tax years and as tax years end every 5 April, once the tax year has gone the opportunity to get the tax relief is lost.
It works like this . . .

Paying a salary from a company is an allowable expense. All things being equal, your company will get 20% tax relief on …

routine »

[4 Apr 2011 | No Comment | ]

The Protocol
When you have a new starter please ask them to complete a data sheet, and provide us with a copy of the form P45 from their last employer.
The data sheet (a CSV file) can be downloaded from here.
Please scan the form P45 Part 2 (or just let us have a digital version of the P45 if possible).
If your new starter does not have a P45, then they must complete page 1 of a form P46.  We will complete page 2 of the P46. A new starter cannot be paid …

routine »

[31 Mar 2011 | No Comment | ]
Quarterly Accounts Checklist – the 300600 message

This article was replaced on 5 Aug 2013 by these two:
Keeping business records – the full story
Keeping business records – a quick guide

routine »

[8 Mar 2011 | No Comment | ]

The payroll reports for this period have been completed. Payslips have been sent by e-mail (either directly to the staff or to the HR manager as specified by you) and the reports listed below have been placed in the Dropbox folders:

Biz Name\Year End\processed\payroll
* 700470 pay summary – net pay for each employee
* 700475 payslips – all of them
* 700484 PAYE remittance – yellow payslip book info (form P32)
Please check the 700484 PAYE remittance file. You will need to make a payment by the 19th of next month. This can be …

routine »

[1 Jan 2011 | No Comment | ]

Business is business, and your clients know (just the same as you do) that if payments are not made properly, then the business relationship they have with you will ultimately die. Here are 5 key steps to help you ensure that things are kept under control.
1. Terms and Conditions. You need to manage expectations, and a properly drafted set of terms and conditions (T&C) sets the scene immediately. Don’t start work without one. It allows both you and your client to understand the roles and requirements of each party. It …

routine »

[24 Dec 2010 | No Comment | ]

We operate a standardised system where we do payrolls on a strict monthly basis. However, many small business are entitled to make quarterly remittances to the Accounts Office rather than monthly ones. This is not something that we get involved in, though we have no objection to clients using the mechanism.

HMRC are prone to sending out reminders and penalty notices when things go wrong, and so it surprises us that there is no formal “application” process for quarterly payments. That’s why we are committed to following a monthly pattern. If …

routine »

[24 Jun 2010 | No Comment | ]

This article was updated on 1 Aug 2014 to include the simplification of the reports, namely the inclusion of a tax provision on the balance sheet, rather than as a separate report.
Every time a book keeping exercise is done, we generate a number of reports. You may not need them all, although we provide all relevant reports to all clients, just to be on the safe side. You’ll also notice that we tend to show dates in scientific notation YYYYMMDD so that similar files are listed in date order.
As a …

routine »

[24 Jun 2010 | No Comment | ]

This report is a companion to the more detailed information at . . .
The bookkeeping reports
We use a number of systems of coding for different purposes. Those of you familiar with Sage will recognise some of the 4 digit account codes in our 444120 and 444125 reports. This is a basic summary of the most common account codes.
4000 Sales – CU – UK cust
4100 Other operating income
4106 Bank interest received
6000 COS – purchases
6004 COS – commissions
6005 COS – other
6200 Advertising
7000 Wages
7001 Directors Salaries
7006 Employers N.I.
7007 Pension contributions
7010 SSP Reclaimed
7011 SMP …