We have put together the answers to the most common questions we get asked, please feel free to contact us if you want to know anything that is not on this list.
Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers. The vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) will be mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software from April 2019. DL Accounts has taken a pro-active approach to MTD and we have been preparing for it since it was first announced in 2015, That said all of our clients are already MTD ready so if you want to know more about how we can help get you MTD ready please get in touch.
Here at DL Accounts we are proud to be Xero Gold Champion Partners, we recommend this to all of our clients as we believe it is the easiest and most advanced software currently available. Everyone at DL Accounts are certified as well as being recognised specialists in a vast majority of areas such as trade and construction, Retail and e-commerce and professional services.
We do however also offer Quickbooks and Sage and are also certified in both products, so whatever software you are interested in then please come and have a chat with us to see which best suits your needs.
As we are 100% cloud accountants, this also means that we are 100% paperless. You will get the software that allows you to take pictures of your expenses as well as your own personal receipt bank email which enables you to forward any expenses you receive via email instead of printing them. These are all stored on your own cloud account which keeps them for 7 years. Your bank will directly connect to our accounting software as well as feeding your statements directly into Receipt Bank for us.
Of course. It is very simple to change accountants. Just let us know you would like to change and give us your old accountant’s details; we will write a professional clearance letter and sort the rest for you.
This is probably the most common question and the most difficult to answer. There are many factors to consider when deciding how to run your business. The first thing to consider is how much profit you believe you will make, by the time you take into account the extra administrative responsibilities and cost. Of course this is a purely financial decision. You will be better off as a Ltd Company if your profit is roughly £24k or more. However, there are more factors to take into account than purely financial, like pension schemes, less risk, prestige etc. Call or email us to discuss this more before you make your decision. We can do all aspects of the Ltd company and also incorporate your company within 24 hours.
Many people ask why should I use an accountant when I can do it myself? Firstly, the main reason to use an accountant is to make sure the accounts are accurate, claim all of the expenses that you are entitled to and fill out your tax return correctly. Secondly, we can advise you as your business grows on the most cost effective ways to expand and thirdly, we take the stress out of the paperwork side leaving you time to concentrate on your business!
As a client of ours you will receive Receipt Bank free of charge, this will allow you to take pictures on your phone or tablet of your expenses/invoices that come immediately to us, bank statements, credit card statements and finance agreements can be uploaded too. Receipt Bank Keeps your details for 7 years and is accepted by HMRC . You will also get a direct bank feed into your software. If you have or had another job during the tax year I will also need your P60's and P45's.
Under the Pensions Act 2008, the law on workplace pensions changed. Now, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called 'automatic enrolment'. This means that if you employ at least one person whether you're a hairdresser, an architect or employ a personal care assistant, you are classed as an employer and you have certain legal duties. We can make sure that you're prepared for automatic enrolment and help you with all aspects of the process. From checking your Staging Date, acting as your point of contact, checking who to enrol, working out your costs, assessing and enrolling staff as necessary, ensuring you fulfil your ongoing duties, completing the Declaration of Compliance and dealing with re-enrolment.
We deal with all sizes of businesses from large to small, from turnovers of £1,000 per year to £10,000,000; we treat each company with the same importance and care.
No - we deal with individuals, businesses and seafarers from all over the UK. We can get information through the our Receipt Bank app and direct bank feeds; allowing us to be able to do your accounts, MTD and tax returns. Please check out our sister company MTD Experts Ltd at www.makingtaxdigitalexperts.co.uk who specialise in providing all services for businesses nationwide.
When you start working for yourself you need to register with HMRC within three months to avoid any possible fines. We can do this for you at no cost. Contact us as early as possible and we can answer any questions you may have and advise on what you need to do next.
The amount of tax you pay is based on your net profit after add backs and depreciation. For the 2018-19 tax year the personal allowance is £11,850, this means you can earn £11,850 before you pay any tax. You will then pay 20% tax on the next £34,500 before increasing into the 40% bracket. You will also have to pay 9% Class 4 National Insurance on profits between £8,424 and £46,350, anything above this higher figure you will pay 2% Class 4 National Insurance on. There is a link below to the full 2018-19 rates.
Your tax return and any tax due will have to be submitted and paid by the end of January following the tax year ending April 5th. For example, if your tax year ends between 6th April 2018 - 5th April 2019 your tax return and tax due will have to be submitted and paid by 31st January 2020.
If you owe more than £1,000 in tax for a tax year, you will have to pay the same amount for the following tax year in advance; half in January and the other half in July. For example if you owed £4,000 for the tax year ending 5th April 2019, you will need to pay £4,000 plus £2,000 first payment on account by the 31st January 2020, then another £2,000 second payment on account by the 31st July 2020. This £4,000 payment on account will count towards your tax bill for the year ending 5th April 2020.
The UK operates a rolling registration threshold. Meaning businesses must track their sales over the previous 12 months to determine if they have exceeded the threshold, If your turnover is £85,000 or more in the twelve month period, you will have to register for VAT; the current rate is 20%. You may voluntarily apply if your turnover is below £85,000. Please call us to discuss, as VAT is a very complex area.
AAT stands for the Association of Accounting Technicians. It is the first step into accountancy and delivers a firm basic understanding of accounts.
ATT stands for the Association of Taxation Technicians. It is aimed around dealing with taxation issues and tax law.
CIMA stands for Chartered Institute of Management Accounts. It is one of the highest accounting qualifications there is. CIMA accountants specialise in management accounts; it will allow you to make a much more informed decision on what direction to take your business.
A direct payment is an amount of money that a local council, for example Cornwall Council pays to meet the needs of you or the person you are looking after. The money is given to enable you/them to purchase services that will meet your/their needs, as assessed by the local council. We can help you with all your payroll needs, paying your employee(s) and completing your end of year declaration.
Business First Network (BFN) is a leading commercial UK membership organisation. We are proud to be their recommended accountant for Cornwall.
Not all businesses need management accounts doing on a monthly or quarterly basis, it depends on the size and nature of your business. Management accounts will give you a greater insight into your business, where you're spending your hard earned money and if there are ways to improve. For the ultimate insight into your business you should check out our own DuaL Vision product which gives you 24/7 access to realtime management accounts and KPI's.
Cashflow is one of the most important aspects of your business and is the number one reason a business either succeeds or fails. It is really important to know what money is coming in and going out, when it is happening and planning for future events. Again check out our DuaL Vision product which will ensure you always know your cash position.
Looking for a particular package?
The Essential package is perfect for those businesses who just want basic compliance. You get quarterly MTD returns (if applicable) along with annual accounts, a tax return and 1tap software to take pictures of all your receipts on your mobile or tablet.
The Expand package is our most common starting point for clients. You will get all that you need to take your business to the next level. Within this package, you will get accounting software (Xero, Quickbooks or Sage), Receipt Bank software to store digital images, a 3 month on-boarding service and unlimited advice. Add-on services are also available to build your bespoke package.
Elevate is the ultimate package for clients who want to have real-time information at their fingertips. Packed with all of the Expand features, it also includes payroll and pensions for up to 10 employees, Quarterly VAT Returns, our top grade Tax Protection insurance and the all new DuaL Vision Reporting product as standard.