Limited Company Archives - Page 4 of 7

News,May 2018

How to Get Money Out of a Limited Company Without Paying Tax?

George19/01/2022Dividend Allowance , Limited Company , Tax Saving Tips

Running your own company can be more tax-efficient than working through an umbrella company or sole proprietorship. Through it, you can get rewards for your work by maximising your take-home pay and taking advantage of the savings due to the number of withdrawing options available. You can extract money from your limited company through salary, dividends, pensions contribution, and director’s loans. These are great ways to save taxes while taking money out of your company. So it is important to understand the tax implications and timings before deciding the withdrawal method. Let’s find out how to get money out of a limited company without paying tax? If you want a professional accountant and bookkeeper for your company, we can help you. Our bookkeepers and accountants at CruseBurke are qualified and cost-effective. We save your time, money, and stress by handling all your finances and business problems in no time. Contact us now! How to Get Money Out of a Limited Company Without Paying Tax? Typically, there are four tax-efficient ways to extract money from your limited company. Let’s explore them: Salary You can easily extract salary from your business to your personal account. Although you can’t take the majority of your income from your salary, but you can have a monthly pack packet without any tax implications. The tax-efficient way to extract money from your salary is to keep it a minimum below the personal allowance of £12,570. You will be required to deduct all the taxes, NICs, and employers NICs to pay HMRC. Dividend Directors tend to be shareholders of the company to take dividends from the company in the form of any profits that a company makes. The company directors must declare dividends and the date of payment agreed at the board of meetings. Dividends can be a tax-efficient way to extract money from a limited company with a dividend allowance of up to £500. Above this allowance, you need to pay as per your PAYE rate band. Bear in mind that the income earned from dividends can be added to any other income. The income from other sources and dividend income may push you to a higher tax band. However, with the dividend received, you don’t need to pay NICs. Check out our company formation packages and our accounting services for small businesses. Contact us right now! Pension Contribution Your company can contribute to your pension pot through which you can save a significant amount NI and tax, instead of making money through a salary. Note that you can’t receive this fund until you reach the retirement age. The allowance for pension contribution is £60,000 for persons earning up to £260,000. This allowance decreases if you cross the higher limit. The pension allowance must not go above your total income from all sources. Director’s Loan You can take a director’s loan from a limited company to meet your short-term personal needs. Extracting money via it can be a useful interest-free and low-cost funding source. Note that this loan is taxable if exceeds £10,000 or if you make interest payments to the company below the official rate set by HMRC. You need to pay back the loan before the year-end otherwise you’d be liable to pay an additional tax charge (S455) on the due balance. Quick Sum Up Hope you have learned different ways on how to get money out of a limited company without paying tax. Many business owners find extracting money from the limited company through the mix of salary and dividend more profitable, however, it depends on different factors and your personal circumstances. Working out the most tax-efficient way to take money out of your limited company can be complicated and time taking, therefore contact our qualified accountant to do the hassle for you. We save your time, money, and stress by handling all your finances and business problems in no time! Call us on 020 8686 8876 or email us today. Disclaimer: The information is intended to provide general information.

How to Make A Company Dormant?

George12/01/2022Business , Finance , Limited Company

Whether you need a break for a while, you’ve got a permanent job offer that you can’t refuse or want to retire, in such cases you may decide to make your company dormant. Whatever your reasons, you can stop running your business for some time by making it dormant. But many of you might not know how to make your company dormant, so here, we’re going to explore how to make a company dormant? Before delving deep into the details, let’s talk about: What is a Dormant Company? When can you make your company dormant? How to make a company dormant? Responsibilities involved with dormancy Advantages of dormancy CruseBurke offers inclusive accounting, taxation, payroll, company formation and confirmation statement services for Limited Companies and LLPs at the best price. Check out our company formation packages and our accounting services for small businesses. Contact us right now! What is a Dormant Company? A dormant company is an inactive company that has no accounting transactions in a financial year and does not have any alternative income form. You can make your company dormant right after incorporation or trading for some time. This company could not be involved in any business activities or make any income. Bear in mind that a dormant company needs to be registered with the Companies House and its dormancy status needs to be notified to HMRC. When it starts trading again or generates any income, your business will no longer be dormant. When Can you Make your Company Dormant? As per the HMRC’s guidelines, to register your company dormant, you must fall under one of the following criteria: Your company has not started its business activities A company used to trade but is not currently trading A company that wants to be removed from the Companies Register It is an off-the-shelf or shell company to be sold A company that will never be trading as it was formed to own an assets If you want to keep your company’s dormancy status, it will be considered active for corporation tax purposes if it meets one of the following conditions: Involved in a business activity like trade or professional service Buying and selling goods to earn profit Earning interest Offering services Managing investment Receiving income from any other source Is not a flat management company Is not an unincorporated association or club owing less than £100 Corporation Tax There’s more detail on the government website. How to Make a Company Dormant? If you want to make your company dormant, you need to first register for dormancy status with HMRC. If it was doing trading before, HMRC will let you know whether you need to complete a corporation tax return for the past period. You need to send HMRC online before your company is considered dormant. In addition, you also need to close your payroll and pay any outstanding bills. Want to make your company dormant? Seek professional help with Accountants in London. Have a look at our inclusive startup or Limited company packages here! What are your Responsibilities if your Limited Company is Dormant? Even when you are dormant, there are few responsibilities that limited the company director needs to fulfil. Directors are required to file the following documents to Companies House: You need to file an annual confirmation statement to let provide a snapshot to Companies House about the company’s officers and address details Annual accounts at the end of a financial year to prove that the company has not been trading for a year Advantages and Disadvantages of Making a Company Dormant Here is the rundown of the benefits of making a company dormant: You can take a break from running the company, if you become ill, or need to move somewhere on a temporary basis Lower administrative cost Time to prepare a restructuring plan No limit to keeping your company dormant Cost-effective than closing down a company Here are some of the downsides of it: You need to fulfil some administrative obligations even when your company is dormant Need to file dormant accounts and Confirmation Statements to Companies House on an annual basis Quick Sum Up That’s all about how to make a company dormant. To do it, you just need to register it as a dormant company with HMRC and need to inform clients and agents that you are no longer trading. If you want to restart trading, inform HMRC within the first three months. You also need to send your annual accounts to Companies House along with corporation tax within nine months of your company’s year-end and send company tax returns to HMRC within 12 months of the end of the company’s year. Turn to CruseBurke for preparing and submitting the return and save your time, money, and stress. We have a team of skilled accountants who will handle everything with HMRC and Companies House on your behalf. Contact us right away! Get an instant quote for a customised offer at a fixed fee! Disclaimer: This blog is written for general information on the topic.

Self Employed or Limited Company: What’s the Difference?

George30/12/2021Accounting , Accounting Issues , Limited Company , Sole Proprietorship

While setting up your business, one of the most crucial decisions to make is to choose a business structure. There are a lot of business structures to choose from. Limited liability partnership is the less popular business structure used by professionals. The majority of the business structures in the UK are either self employed or limited company. According to the latest reports of Statista, there are around 4.3 million self-employed workers in the UK. On the other hand, there are over 4 million limited companies registered in the UK. Let’s dig deep into both to know what are they, are taxed the same, and what cost and administration is involved. Let’s kick off with what is self-employed and what is a limited company? We save your time, money, and stress by handling all your finances and business problems in no time! Call us on 020 8686 8876 or email us today. Self Employed or Limited Company: Differences Let’s have a quick glimpse at self-employed and limited companies. What is a Self Employment? Self-employed persons work for themselves as sole traders. There are no shareholders or officers and the self-employed person has total control over his business and is liable for all the profits and losses personally. The losses made by a sole trader directly impact the personal finances of a sole trader. Income tax is payable on the profit earned and needs to pay Class 2 and 4 National Insurance as a self-employed individual. What is a Limited Company? A limited company is a separate entity with its own identity and it is separate from shareholders and directors. The personal finances of directors of the limited company are kept separate from the company until there’s fraudulence or any breach. A limited company has to pay corporation tax on the taxable profit and they need to deduct income tax and NI from the employees’ salary through PAYE. Tax Implications Let’s see how self-employed persons and limited companies are taxed. Self Employed Tax Self-employed persons need to pay income tax through Self-Assessment. They need to register for VAT if reached the threshold of £85,000 (2021/22). Here are the tax rates and threshold that a self-employed person should know: Band Taxable income Tax rate Personal Allowance Up to £12,570 0% Basic rate £12,571 to £50,270 20% Higher rate £50,271 to £150,000 40% Additional rate over £150,000 45% The deadline for online tax return is Midnight 31 January 2022. Moreover, self-employed persons need to pay Class 2 National insurance if the profits are £6,515 or more a year and Class 4 NI on profits over £9,569. Here is the rate of NI rate you need to remember: Class Rate for tax year 2021 to 2022 Class 2 £3.05 a week Class 4 9% on profits between £9,569 and £50,270 2% on profits over £50,270 We can register you as self-employed to HMRC on your behalf! Fill out this form and let us handle everything! Limited Company Tax Instead of income tax, limited companies need to pay 19% Corporation tax on the annual profits. Company directors are levied tax based on the salary they earn from a limited company. Dividend tax is paid on dividends received from a company. In addition, income tax and Class 1 NI is payable on any salaries paid by the company. And companies need to pay Class 1 Employers’ NICs on salaries paid to employees. Want to incorporate a company? Get in touch with one of our professionals. Check out our company formation package! Administration and Costs A limited company needs more administration and management tasks compared to self-employed. Limited Company Administration All the limited companies of the UK need to register with Companies House. It must make sure to inform the registrar of companies informed of any changes made, need to file confirmation statement and PSC each year along with the company accounts. The cost of forming a limited company is affordable and the accountants are responsible to manage the accounting tasks along with dealing with HMRC and Companies House. Self Employed Requirements There are fewer legal responsibilities and administrative tasks in forming a limited company. You just need to register for self-assessment and pay the due tax and NI on time. Quick Sum Up So after giving this blog a read, you have now understood which business structure to choose: self employed or limited company. As a self-employed, you are your own boss and liable to pay tax and NI 2 & 4 on your earnings. Whereas, limited companies need to pay corporation tax and Class 1 NI on salaries paid to employees. Bear in mind that there is less hassle to work as a self-employed, but with limited companies, you have to meet administrative and legal responsibilities. Turn to us if you need any help with accounting, tax payroll, and other finance-related problems. We will solve your tax issues in no time and at an affordable price! So, contact us now! Disclaimer: This blog contains general information about the topic.

National Insurance for Limited Companies Explained!

George17/12/2021Limited Company , Taxation

If you are wondering about national insurance contributions, we can simply know them as one type of tax. For several employees, it comes just like the income tax and around the same time as well. However, when it is concerned about the limited companies national insurance is a way to gain or lose tax efficiencies. Moreover, it is important to know that not everyone is bound to pay national insurance, it is applicable to the individuals who are earning by being self-employed or employed with a company and are over the age of 16 as well as below the stature retirement age. Often people tend to mix up national insurance and other tax payments. The prominent difference is national insurance comes with some state benefits for the workers and this includes statutory maternity pay and state pension. The directors of the limited companies will have different NIC rates and this depends on the circumstances. To have a further understanding of the rules, we need to look at the points of discussion in this article that are explained below. This includes the following: National Insurance Limited Company Classes Benefits In-Kind Self-Employed Rates The Bottom Line Want to learn more? How about you get our guys on a quick call. We love talking about taxes, payroll management, and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. National Insurance Limited Company Classes: There are basically three classes of national insurance contribution systems. They are mentioned below for you: Class 1: This is applicable to the earnings from employment. Class 2: If you are self-employed, NICs is payable on the profits. Class 3: These are the contributions that are related to voluntary payments. If you are the director of a company, you come under class 1 because this makes you an employee of your own business. Benefits In-Kind: The category letter can directly affect the rates of NICs. In case your category letter is changed, this is because maybe a refund is due or maybe because you have to pay an extra amount of money. In case your income is above £8,500, you come under class 1. Even if you are a director in the business who is there for the material purpose. Such classes are associated with taxable benefits in kind. Self-Employed Rates: It is important to have a basic understanding of self-employed rates for NICs if you are a self-employed individual, contractor or working as a director of your own company. This can be charged in the following ways: You are underclass 2 in case your profits are equal to or go above £6,515 (2021-22) annually. In case your profits are £9,568 (2021-22) or more then you come under Class 4. NIC contribution is £3.05 every week for class 2. This happens to be paid by the debit. If we talk about class 4, the contribution is 9% from £9,568 to £50,270. There is no doubt that income tax depends upon the profitability factor associated with your business. Working as a self-employed individual and still confused about your national insurance rates? Get in touch with one of our professionals and get your queries answered instantly. The Bottom Line: Now that you have developed a better understanding of National Insurance Limited Company rates, we can sum up the discussion by saying that there is no way to possibly find an escape from national insurance contributions if you are self-employed, work as a contractor or a director of your own limited company. If you still seek for further guidance to see what is payable in your case, feel free to go for professional advice in order to ensure seamless working. We hope this article helped to develop a better understanding of the basics of NICs. Can’t find what you are looking for? why not speak to one of our experts and see how we can help you are looking for. Disclaimer: This article intends to provide general information based on National Insurance Limited Company and relevant details.

How does HMRC Define a ‘Personal Service Company’?

George06/12/2021Business , Limited Company , Sole Trader

Sometimes the contractor set a company to provide their services to the clients that are known as PSC (Personal Services Company). This has been observed that agencies and clients prefer personal service companies over sole traders or people who work individually. The reason behind this could be the one that comes in between while you are hiring a sole trader, the relation is still considered as employer and employee, not contractor and client. This way the client is responsible for sick pay and other holidays. By now you must be wondering what is a personal service company? Before we delve into further discussion, let’s have a look at the points of discussion in this article, this includes the following: What is a Personal Service Company and why to Set up? Client Benefits The Bottom Line Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. What is a Personal Service Company and why to Set up? As discussed earlier a personal service company is set up by a contractor to provide their services to the clients. The question that arises here is that why do contractors set up the PSC? This is because it seems the best option out of all the options to get the work in the fastest way possible. If the contractors want a quick response at work, setting up a personal service company is the best way to get it. Out of several benefits that the contractors get from the PSC, the most prominent happens to be tax efficacy. A fusion of salary and dividends goes to the contractors as their income. This makes them avoid paying the employee-employer national insurance and other such deductions as well. This can make a big chunk of take-home pay come home without a lot of deductions. Get in touch or arrange a meeting, explain your requirements, or sign up online. Client Benefits: Often people dream to manage work in a way in which there are chances to avoid the relationship of employee and the employer. There are many more benefits for the client that come with the offer, this includes the following: Reduced risk of getting to hire an organisation but a single person who is considered as a company as well. The option of seeing the contractor in case things don’t go as planned makes the clients feel safer. For a better protection factor, the hiring process may include the agency before giving the authorisation. This can further work like a one-stop-shop in which there is a search of the need-based skilled contractors for the business projects. Our accountants at CruseBurke are qualified and cost-effective! We save your time, money, and stress by handling all your finances and business problems in no time! So, allow us to do this at an affordable package! The Bottom Line: Now that you have developed a better understanding of What is a Personal Service Company, we can sum up the discussion by saying that a number of client benefits come with the offers made by the contractors who work as a PSC. However, if to ensure the seamless working of the process, professional help can help you decide what is the most beneficial and suitable option for you as a client. We hope this basic guide developed a better understanding of personal service companies and relevant details. Seek professional help with Accountants in London. Get in touch or ask our accountants about your concerns. Disclaimer: This article intends to provide general information based on What is a Personal Service Company.

I’ve Started a Business – What Do I Need to Do Now?

George02/12/2021Business , Limited Company , Sole Trader

Have you just thought about getting into a new business and wondering how you can join a networking group? Getting your business an enchanting logo and looking for unique ways to attract customers can be the pretty fun part of the beginning. However, do you ever think that “do I need to register my business” while you are enjoying the marketing of your business, a couple of finance matters need research for better implementation as well. Once the finance part is stable, you are good to focus on good marketing strategies and ready to enjoy the business growth. Before we delve into further discussion, we need to have a look at the focused points of discussion in this article. This includes the following: Choose between Self Employment or Trade Through Limited Company Limited Company – Incorporate Do I Need to Register My Business? Business Account Consider the Deadlines The Bottom Line looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. Choose between Self Employment or Trade Through Limited Company: According to a famous saying choosing the right path means you are halfway there already. Giving time to seriously consider the pros and cons of being self-employed or trading through a limited company is a wise suggestion here. The need in the case of trading through the limited company is to develop one first before making purchases and invoicing the customers. Several people tend to choose self-employment at the development stage and then plan to switch to a limited company. However, an important factor to consider here is that you can’t go to self-employment if the trading through a limited company has started in the business. Do you seek professional help to know the right business option for yourself? Get in touch with one of our experts to get instant help on your business matters. Do reach out today! Limited Company – Incorporate: Once you are sure that trading through a limited company would be beneficial for you then you should: Start gathering the ideas to set up your own company. Seek a professional accountant to help you to incorporate the limited company. Look for a unique company name and be sure that name is not already taken. Fill the required forms and you will find the companies house to be with you in every step. Do I Need to Register My Business? Registration is an important part of the fundamental stage. If you plan to go self-employed, contact HMRC for self-assessment. This fulfils the purpose that you are bringing into HMRC’s knowledge that you are a person who is self-employed. By doing so, you will be bound to pay tax returns at the end of the tax year as well. In case you have started your business in May, you are not required to inform HMRC instantly but you can do the needful by the end of October. Business Account: Setting up a business account is the basic step that you must do even before the business is set up. Due to the reasons: It will be easy for you to check the business profitability. Accountancy fees will be reduced due to the fact that bookkeeping is way easier because of fine tracks. HMRC investigations will not reach out to your personal information. Moreover, in the case of a limited company, one thing to consider is that the business account must be in the name of your company. Due to the fact that personal accounts or the accounts without company names carry the money that is treated as it is removed from the company. Consider the Deadlines: Track your deadlines in your personal diary in case you choose to be self-employed. Every tax year will require self-assessment tax returns. The tax year starts from 6 April and ends on the 5th April of the coming year. Tax returns must be completed by the following January. For instance, you have started your business in May 2019. The first tax return is from 6 April 2019 to 5 April 2020. You can submit your tax returns as well as your tax bills by the end of January 2021. The Bottom Line: Now that you have developed a better understanding of do I need to register my business and relevant details, we can sum up the discussion by saying that starting a business may sound fun in the initial stage, however, there are certain challenges that might meet you along the road. By following the discussed information, you can make it a seamless process. We hope this article helped to develop a better understanding. Seek professional help with Accountants in London. Get in touch or ask our accountants about your concerns. Disclaimer: This article intends to provide general information based on new business development ideas and answers do I need to register my business.

Tell HMRC When you Change Company Name and Address

George29/11/2021Business , Limited Company

Does your company plan to make any changes in the basic information like the company address or change of name in business? It is important for you to know that business-related agencies and business authorities are the ones you need to inform. Primarily the authorities are mentioned below: Companies house HMRC If you fail to inform HMRC or companies house on time, you have to pay a fine. There is the need to inform the updated address because of the requirement that is required to be updated in the following information as well: National Insurance Child Benefits Tax Credits Income Tax State Pension After the change is updated, the relevant person will be asked for a confirmation or to provide more relevant information in order to update the recent changes. Legal documents might be another requirement in order to support the change in the business name. For the people who intend to sign in for the first time, they will require the following: National Insurance number Government Gateway Account Before we delve into further discussion, we need to have a look at the focused points of discussion in this article. This includes the following: Change of Name or Personal Address HMRC Change of Address or Name for Business The Bottom Line Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. Change of Name or Personal Address: In case a person gets the pension or salary through PAYE, and there is a change in the person’s address, HMRC needs to be informed to update the recent changes in the address. The other case that makes it important to inform HMRC about any such change is the self-assessment tax return. Moreover, there are multiple ways to inform HMRC if the person relates to any of the following conditions: Stays abroad Plans to leave the UK in order to settle abroad Self-assessment is the only way a person is paying the tax One can always inform HMRC to update the change in the name, personal address or change of any other circumstances online as well. A personal tax account or government gateway are two ways to do so. If you’re changing your company’s registered name, you’ll need to submit Form NM01 to Companies House. For address changes, use Form AD01. Both can be filed online via your Companies House account. Note: There is an exception of the special section D if you intend to inform HMRC about the gender change. Want to know more? Get in the car, and reach our Croydon office today. Call us on 020 8686 8876 or email us to book your initial free one-hour basic consultation to discuss your requirements. HMRC Change of Address or Name for Business: It is even more important to be notified of any changes that are made in the business details like business name, company address etc. This change of business details is required to be known by the clients, business dealers, different authorities and suppliers. Mentioned might not relate to the business directly but it is still vital to keep them informed and updated. Primarily the following: Service Providers: Tax advisers and accountants come under this category to whom you will inform about the changes in the business details to update the information. Clients and Suppliers: Other agencies and customers need to know is equally important in case of any changes are made in the company name or address. The providers of telecommunication also come under the vital category to be informed. Financial Institutions: Loan companies, all the banks where the person has business accounts and the pension providers are integral parts of the financial institutions. Can’t find what you are looking for? why not speak to one of our experts and see how we can help you are looking for. The Bottom Line: Now that you have developed a better understanding of change of name in business or personal information needs to be informed to HMRC, we can sum up the discussion by saying that it is without a doubt a little challenging task to keep all the departments informed about the changes made. However, this will further save the individual from any haphazard of not receiving the supplies on time. We hope this article provides fair information to help you understand the need of informing important departments about any changes made in personal or business details. Seek professional help with Accountants in London. Get in touch or ask our accountants about your concerns. Have a look at our inclusive startup or Limited company packages here! Disclaimer: This article intends to provide general information based on change of name in business or personal information needs to be informed to HMRC.

What is a Confirmation Statement? A Basic Guide

George02/11/2021Business , Limited Company

Onward from June 2016, the UK government replaced the Annual Return (AR01) with a similar document known as the confirmation statement (CS01). This annual statement is a filing requirement that works the same as Companies House form AR01. All the registered companies and LLPs ( limited liability partnerships) in the UK are required to send this statement each year (even if the company is dormant) to the Companies House. Failure to send this statement is considered a criminal offence and you might face a penalty if you don’t file it on time. Before we delve deep into the details, let’s kick off with what is a confirmation statement and what does it include? CruseBurke offers inclusive accounting, taxation, payroll, company formation and confirmation statement services for Limited Companies and LLPs at the best price. Check out our company formation packages and our accounting services for small businesses. Contact us right now! What is a Confirmation Statement? Companies House needs this document (CS01) to verify that the company details that it already holds are up to date and accurate. It contains general information about the directors, secretary, shareholders, registered office address, share capital and people with significant control. Before this statement, all companies were required to provide a summary report once a year. Now, with this document, you just need to review all the details that you are providing to Companies House are up to date and accurate. In case, if there is no change to your company, you are required to verify that all these details are the same. This document is sent to CH every year. In addition, CS01 is also required by the Companies House to update your publically available database. What to Include in a Confirmation Statement? If there is even a slight change to any of the following, you are required to report it with the confirmation statement. Here is the information you are required to report or update whenever you file your CS01: Company name, its registered office address and company registration number (CRN) Standard Industry Classification (SIC Code) Relevant details of directors, shareholders and company’s secretary (where required) Principal business activities of a company Share Capital Company Type Single Alternative Inspection Location (SAIL) Where each statutory register is kept (For SAIL) Whether any of the company’s shares are admitted to a public trading market People with significant control (PSCs) Seek professional help with Accountants in London. Get in touch or ask our accountants about your concerns. Have a look at our inclusive startup or Limited company packages here! When do You Need to File CS01? You need to file it at least once a year. Companies House will also inform you to file it. The first filing due date after the company formation is up to 12 months. You can file it during or before this time, or more than once a year but you should not file it later than two weeks (14 days) after the confirmation date. As it would lead you to penalties, fines or your company might be struck off from the company register. If you fail to submit a confirmation statement, it would be considered a criminal offence, even if your company is non-trading or dormant. After filing your first statement the next filing date will be based on the first one. Like if you file your last statement on 31st October 2020, you need to file that next one by 30th October 2021. Do you Need to File a Confirmation Statement? You need to file this statement: If your company is trading, non-trading or dormant If you are a director, secretary or the authorised person or LLP member If there’s a company update, you need to inform the Companies House about the changes. Even if everything remains the same in a year, you’ll still need to tell Companies House that everything is the same. On the contrary, you are not required to file CS01, if: Your company has struck off from the Companies Register or is going to be You don’t have the responsibility to file CS01. As there are many employees, non-executive directors and shareholders who are not responsible to file one. How to File a Confirmation Statement? You can file this statement both online or by post. Filing CS01 form by post can be laborious, time taking and costly. As it costs £40 to file this statement by post. And you only need to pay £13 if you file it online. To file online, an authentication code is required. So you need to request this code in advance to get it earlier. This code will be received at the company’s registered address. If you are unable to file the CS01 form or don’t have the time to do it, allow our experts to do it on your behalf at an affordable rate. Reach out today! Wrapping Up So, now you’re well aware of what is a confirmation statement? What to include in it? And when, why and how do you need to file it? All limited companies and limited liability partnerships (LLPs) are is required to send CS01 to Companies House on annual basis to inform the changes or verify that everything is accurate and up to date in the records of Companies House. Remember that you need to send it within 14 days of the end of the review period. As it may lead to heavy penalties, or your company or its officers might be prosecuted and your business might be struck off the register. So you need to be cautious to avoid any unfavourable situation. We offer all-inclusive accounting, taxation, advisory and confirmation statement services to all UK registered companies and limited liability partnerships. Check out our packages! Our experts will complete your confirmation statement and file it electronically to Companies House in no time. Reach out or Get an instant quote today! Disclaimer: This blog provides general information on the confirmation statement.

How to Find a VAT Number?

George30/10/2021Business , Limited Company , VAT

A unique VAT (value-added tax) number is assigned to each VAT-registered business. If you’re a VAT-registered company, you’ll need the VAT number of other companies (suppliers) in order to reclaim any VAT you’ve paid. Therefore, this blog will let you know what is a VAT registration number, why it is essential and how can you find VAT numbers. Let’s start! Want to register for VAT? We’ll take care of everything to acquire your VAT number. So, fill out this form and leave the rest on us! What is a VAT Registration Number? When a company registers for VAT, at that time HM Revenue & Customs provides a unique ID to that company, which is called a VAT registration number. Within the united kingdom, the length of a VAT number is nine digits with the prefix GB. In case you are working with a supplier in another European country, then the format of the VAT number of that country will be different, with its own particular country code. Why is this Number Important? If you try to reclaim Value Added Tax from HMRC using an invalid VAT code from your supplier, then they will certainly reject your claim. In this case, you will either have to pay for it or spend time rectifying the situation. How and Where you Can Find VAT Numbers? You’ll receive a certificate confirming your VAT registration number after registering for VAT with HMRC. This number will be used for all of your company’s future transactions. Therefore, you have to keep it safe. You can also get the certificate using your HM Revenue & Customs business account. Examining the invoices that are provided to you by another business is the first step in obtaining another business’s VAT number. If the company you’re dealing with is VAT registered, then its VAT ID can be easily found on its invoices. If, on the other hand, you have paid VAT to a supplier but do not have a VAT number, you should contact them immediately. Because you’ll need a valid VAT ID to reclaim any VAT you’ve paid. Are you looking for a VAT accountant that will take care of everything on your behalf? Then, look no other than us for a low-cost service! How to Check a VAT Number is Valid? The following are the ways to check it is valid: 1) Calling the VAT helpline of HMRC In case you have any doubt about a VAT registration number, you can call HMRC. As it has a complete database for VAT-registered companies. 2) Checking the VIES Website Since the UK has left the EU, UK VAT numbers are no longer checked via the EU’s VIES system.To check a UK VAT number, use the HMRC VAT number checker instead:For EU suppliers, you can still use the VIES system: Conclusion Now that you know how to find VAT number, we will conclude our blog by saying that in order to reclaim the VAT you pay, you’ll need an accurate VAT number. You won’t be able to receive a refund from HMRC if you use an inaccurate VAT number in your return. So, we recommend consulting a professional for this as it is a complex business affair. CruseBurke offers inclusive VAT services at a reasonable price! VAT returns can be time-consuming and complex to file. So, you’ll need the help of VAT accountants to handle and submit your taxes; contact us for assistance! Disclaimer: This post is intended to provide general information on how to find VAT number.

Chart of Accounts – A Basic Guide!

George21/10/2021Accounting , Business , Limited Company

You are required to set up the chart of accounts (COA) in case you are taking over bookkeeping in your new company. If you do it rightly, your other tasks will be too easier to manage. The foundation of accounting is bookkeeping, and the initial step to managing your accounts correctly is “setting up the chart of accounts.” It may be challenging to keep a record of your business incomings and outgoings. But, it is important to understand the basics of COA for those who want to know their cash flow and the overall financial position of their company. Therefore, this blog will let you know about COA, its structure, and its importance. So, let’s explore the details! At CruseBurke, we have a team of limited company accountants to prepare and file your company’s accounts at a reasonable rate. Reach out to us now! What is a Chart of Accounts? The COA contains the list of the company’s financial accounts in the general ledger of your company. It permits you to divide all your business transactions made during a particular time into various subcategories. A COA permits you to get an insight into your business’s different areas by separating your income, expenses, assets, and liabilities that are shown in the following infographics. What is the Structure of COA? The list splits all the company accounts by the following: Where do the accounts belong either in equity, assets, or liabilities What financial statement do the accounts go to, either in BS (balance sheet) or income statement? In order to meet the certain needs of your company, this can be further subdivided. The following is included in the charts of accounts: Company Assets: The company assets can consist of the following: Allowance for doubtful accounts Petty cash Accounts receivable Marketable securities Cash Prepaid expenses Accumulated depreciation, etc. Inventory Fixed assets Company Liabilities: The company liabilities may include the following: Accounts payable Taxes payable Notes payable, etc. Accrued liabilities Wages payable Shareholders’ Equity: The equity of a shareholder include: Capital (cash invested by the owner in the company) Drawings ( cash withdrawn by the owner for personal use) Company Income/Revenue: The following can be included in the revenue of the company: 1. Income/Revenue 2. Sales returns and allowances Company Expenses: The following can be included in company expenses. COGS (Costs of goods sold) Depreciation Payroll tax Supplies Utilities, etc. Bank fees Advertising Rent Wages Don’t have the time to manage your business finances! Be worry-free and rely on CruseBurke to handle your business finances in the best possible way. An Example of a Chart of Accounts The following partial listing represents the distribution of accounts in a COA. The gap between the account numbers allows for future accounts additions. How is a COA Used in an Accounting Software? An accounting software deals with the five core accounts (assets, liabilities, equity, revenue, and expenses). They are similar for every company. However, the categories that comes below them in a COA can be customised to fit your company. For instance, for sales revenue, you can create many accounts. One for every area you deal in, or one for each company department. Your accounting software can ask you where to record the opposing credit or debit at the time of entering any transaction into it. You can also instruct the software to make the opposing entry for you, automatically. How to Deal with a COA? The following are the tips to deal with a chart of accounts. Make changes timely – It is better to make changes at the end of the accounting year, as adding accounts is easy at any time, but deleting any creates problems. Keep the COA consistent – Try to consider the comprehensive COA’ structure for your new business in order to keep your accounts organised, right from the start. This will help you to compare the accounting date for the future. Go on optimising your COA – Don’t be afraid to fix the structure of your COA, if it has become inconvenient. And for better bookkeeping, you are required to add other types of accounts. Quick Sum Up We hope now you have understood what is a chart of accounts, its structure, and how to deal with it. We would sum up our discussion by saying that it is essential to know COA basics for those who are setting up a new business. This is because managing your company accounts well can grow your business. Therefore, it is preferable to consult a skilled accountant to set up your COA for your new company. Unable to set up a chart of accounts for your new business? Let us handle this! We are skilled chartered accounts that can manage your business accounts in no time, at an affordable price, and we’ll grow your business like never before! So, contact us right away! Disclaimer: This blog contains general information on a COA.