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[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 …

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 »

[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
* 700480 pension summary
* 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. …

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 …