Accounting FAQs
Bookkeeping FAQs
Can Blackrose Accountants store my receipts electronically?
Yes Blackrose Accountants can help you set up an accounting software that allows you to electronically store your receipts and records your transaction for your accounts.
How does Blackrose Accountants recommend as the best way to do bookkeeping?
1) make sure you keep a copy of all your receipts.
2) update and maintain accurate records of income and expenditure
3) update your records frequently and on a regular basis
4) submit your records to your accountant early
5) Try to know and understand your numbers.
Get our free accounting software to get you started recording and tracking your income and expenses – Blackrose Accountant Free Accounting Software.
Can Blackrose Accounting help me do my bookkeeping?
Blackrose Accountants can help you with your bookkeeping as frequently as your business requires whether this is daily or monthly.
See details of our Bookkeeping Services – Blackrose Accountant Services
CIS Contractors FAQs
How can Blackrose Accountants register a CIS contractor?
Blackrose Accountants can register you or your business as a CIS contractor. First we must complete an online HMRC form to register you as an employer.
One you’re registered, you can then verify your subcontractors and begin paying them.
How can Blackrose Accountant register a CIS subcontractor?
Blackrose Accountants can register you or your business as a CIS subcontractor:
Individuals – apply using form CIS 301
Partnerships – apply using form CIS 304
Limited co – apply using form CIS 305
If you already have a government gateway ID which use to log on to other HMRC services you can go to add services and it will allow you to apply as a subcontractor.
What is domestic reverse charge VAT for CIS?
See details of our CIS Services – Blackrose Accountant Services
Company Secretarial FAQs
How often does my company file a confirmation statement?
A company has to file the confirmation statements each year by the date the company was formed.
See details of our Company Secretarial Services – Blackrose Accountant Services
Management Accounts FAQs
What is included in management accounts?
Typically management accounts will include:
Key performance indicators (KPIs)
- Profit & loss report
- Balance Sheet
- Cash flow
Whilst these are the usual things to include in a management report, it can be customised to what you want to see and how you want to see it.
How do I read and understand management accounts
See details of our Management Accounting Services – Blackrose Accountant Services
Payroll FAQs
What payroll deadlines should I need to know?
Blackrose Accountants highlights Payroll real time information (RTI) should be submitted to the HMRC no later than the 19th of the following month after payroll has been run.
Payment of your tax liabilities under payroll need to reach the HMRC by the 22nd of the following month (3 days after the RTI deadline), unless you pay quarterly.
What is auto enrolment?
How much is PAYE and National Insurance?
The amount you pay depends on how much you earn. Every taxpayer in the UK receives a tax-free personal allowance each year. For the 2023-24 tax year (6th April 2023 – 5th April 2024), your employees will receive a tax free earnings allowance of £12,570.
This personal allowance may change depending on the circumstances of the employee, including whether they are transferring some of their personal allowance through to their partner via the marriage allowance, or if they have more than 1 employer.
See details of our Payroll Services – Blackrose Accountant Services
Self Assessment FAQs
What self assessment deadlines do I need to know?
The deadlines for self assessment that you should be aware of are:
5 October – deadline to register for self assessment for the first time.
31 October – paper return deadline
31 January – online filing of tax return deadline
31 January – tax payment deadline (1)
(1) If you’ve already made payments on account, you may have already partially paid towards this bill.
How do I pay my self assessment tax bill?
How much is self assessment tax?
What is a payment on account?
See details of our Self Assessment Services – Blackrose Accountant Services
Business Tax Planning FAQs
How can I minimise my tax bill?
There are a few ways to minimise how much tax you pay personally as a business owner.
If you don’t have any employees, you’ll want to make sure you don’t pay yourself too much and then have your company end up paying employers national insurance. If you have employees, you can claim employers allowance (£4,000 p/a) and reduce the amount of employers national insurance you pay, meaning you can take a slightly higher salary.
For the 2021/22 tax year, if you don’t have any employees we recommend a salary of no more than £8,788 per annum, with the rest of your remuneration paid in dividends which are taxed at a much lower rate.
As a shareholder, you will also receive a £2,000 tax free dividend allowance on top of your £12,570 tax free personal allowance.
If you have employees, then you can still make tax savings by taking a slightly higher salary (which in turn will reduce the amount of corporation tax your business pays), and dividends.
Can my limited company pay into my pension?
Paying pension contributions is tax-efficient because you’ll reduce your company’s taxable profits and therefore save your business corporation tax.
Paying through your limited company directly into your pension is usually more tax-efficient than making the contribution from your own funds.
How much tax can you save?
For the 2021/22 and the 2020/21 tax years, the Corporation Tax rate is 19%, so for every £10 your company earns as profit, you’ll pay Corporation Tax of £1.90, reducing the amount you can take from your company as a dividend to £8.10.
Extend that to £100,000 of profits, the corporation tax would be £19,000, leaving you with £81,000 in dividends – that’s quite a big tax bill isn’t it!
Simply paying (for example) £100 into an employee’s pension fund effectively costs the company only £81 due to the corporation tax saving and, eventually the £100 investment can grow within the pension fund.
As pension schemes are very complex, we strongly recommend you take specialist advice from an independent financial advisor before making any contributions into an employee pension scheme (including your own
What are the tax rates for dividends?
Dividends are taxed at 7.5%, 32.5% and 38.1%.
The rate you pay depends on your total income for tax, and aligns with the income tax thresholds.
The first £2,000 of dividends – tax free
£0 – £12,570 – tax free
£12,571 – £50,270 – 7.5%
£50,271 – £150,000 – 32.5%
£150,001 and above – 38.1%