Expert Accountancy advice explained in clear language.
We serve all kinds of business people. Our services are designed to help all kinds of business structures, Sole Traders, Partnerships, Limited Companies and Limited Partnerships, and we are prepared to offer general business advice.
Our services are tailor made to work for you
You can supply your documents to us in any fashion that best suits you. We can also customise our packages to help you with specific tasks if you are competent enough to handle some parts of your accounting. Our aim is to help you with your business so that you can concentrate on other important areas:
Stuff your receipts and invoices into a big brown envelope and send it to us. We input your receipts and invoices each month, ready to prepare your end of year accounts and tax return
You send us your recorded receipts and invoices each month on a spread-sheet, via email, and we will use them to prepare your year end accounts and tax return.
You file receipts in numbered order, record them in either a hard book or spread sheet and deliver them to us once a year for preparation of your year end accounts and tax return.
Once a year you give us a pile of receipts and invoices and we make sense of it and prepare your year end accounts and tax return.
You input all the data onto a recognised software package e.g. Sage. We prepare your year end accounts and tax return.
Tax Return Only
Self assessment form. As well as self-employed and company directors many employed people have to fill out at tax return. If all you require is your annual tax return completed then we are happy to offer this service alone.
Our service includes everything from registration, processing returns, classification queries and being on hand to handle enquiries raised during an inspection.
TaxSense offer a complete payroll service, tailored to meet your exact needs at very competitive rates. We help with everything from setting up and maintaining records to year-end filing.
In addition to tailoring our services to suit your own particular needs, we offer all our clients the option to spread their payments over the year to help lower the strain on your business.
Please contact us if you would like to find out more about our services and prices. A member of our friendly team is always available to help with any questions you may have.
Our services in more detail
As well as preparing your tax accounts we are able to offer the following services
Annual Accounts - Year End
Annual accounts are necessary in order for a sole trader or a partnership to calculate their income and what tax is payable to HMRC. For limited companies different rules apply and they have to file annual returns and accounts with Companies House and pay Corporation Tax.
As well as being necessary to calculate your tax payable, annual accounts can provide useful information on your business. They are particularly useful when they are used in conjunction with management accounts, cash flow statements, cash flow forecasts and a business plan.
TaxSense offer a complete payroll service
Whether you are a husband and wife business with one or two employees or have a business employing 100 or more. Our payroll service will be tailored to meet your exact needs at very competitive rates.
Whether you need to employ staff for the first time or have an existing payroll system. We can help with everything from setting up and maintaining records to year-end. Speaking with the taxman. Sorting out queries electronic filing
We will deal with all issues relating to new employees P45, P46, P14's etc, calculating deductions, including, tax, National Insurance, Tax Codes and personal allowance. Where appropriate we will also deal with pension deductions, maternity pay, Statutory Sick Pay (SSP). Payments to HM Revenue and Customs are usually done monthly but can be done quarterly. The tax year begins on 6th April and ends 12 months later, on 5th April and we will deal with all Annual returns and P35's . We will also issue a P60 to each employee, showing the year's earnings and the taxes and NI totals which have been deducted for that tax year.
When an employee leaves, we will issue a P45 showing the tax code, the date of leaving and the amount earned since 6th April. As well as a P45 which is given to the employee so that they can hand it over to their next employer.
TaxSense offer a complete book-keeping service tailored to suite your particular needs. We offer a comprehensive book-keeping service for all sizes of business from one person business to a limited company with up to £5,000,000 turnover.
The main areas of book-keeping that all businesses need to maintain records in are;
This is probably the most important "book". It records all of the payments made into and out of your business's bank account. It is crucial to set up the book appropriately at the start of your business.
A properly organised and well run invoice filing system is very helpful to your business. This will help you track what your business turnover is as well as allowing you to stay on top off unpaid invoices. Used properly as a business tool this book can allow you to manage your business cash-flow.
This records all the goods and services that your business purchases. If it is well organised it can help you plan when invoices fall due and plan for payment. This is a very useful tool in the cash-flow management of your business.
Profit & Loss Account
This measures your business' performance over a given period of time, usually one year. It compares the income of your business against the cost of goods or services and expenses incurred in earning that revenue.
This is a snapshot of your business' assets (what you own or are owed) and your liabilities (what you owe) on a particular day. For example, the last day of your financial year.
New Business Start-ups
We understand what it is like starting a new business. To increase the chances of your venture succeeding it is important to get the right advice -early. Some important decisions need to be made. Your business structure, are you going to be a sole trader or a limited company, if you are setting up with someone else a partnership.
Having a Business Plan helps you work out how you are going to translate your idea into a successful thriving business. If you need to borrow money to get your business off the ground then banks will want to see a business plan.
You will need to decide whether you need to register for VAT. How you are going to keep proper records of your financial transactions, book-keeping. As well as where to find a friendly bank manager.
It is never too early to discuss your business ideas with ourselves. We can help you plan your business at every stage.
Click here to visit our New Business Start-ups Website for more detailed information
You don't have to run a business to take advantage of our competitive fee structure. We are able to help anyone who fills out any UK Tax form, including; self assessment, Family Tax Credit, Tax Credit, Capital Gains Tax, Inheritance Tax and transfers into trusts.
If there any tax questions then please contact us to discuss your requirements.
Inheritance Tax (IHT)
Inheritance Tax is the tax that is paid on your 'estate'. Broadly speaking this is everything you own at the time of your death, less what you owe. It's also sometimes payable on assets you may have given away during your lifetime. Assets include things like property, possessions, money and investments.
Planning your finances in advance should help you to ensure that when you die everything you own goes where you want it to. This could help you provide a sound financial future for your family.
There are some important exemptions that allow you to legally pass your estate on to others - both before and after your death - without its being subject to Inheritance Tax.
Inheritance Tax on transfers into trusts and companies
In some circumstances individuals are able to benefit (reduce the amount of Inheritance tax payable) from setting up a trust or company. These schemes are subject to changing legislation and need to take into account the individuals particular circumstances.
Since 5 December 2005, same sex couples can have their relationships legally recognised. From then on, anyone who registers a civil partnership will have the same rights as a married couple in areas like tax, social security, inheritance and workplace benefits.
Capital Gains Tax (CGT)
CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxable on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.
It does however apply to the sale of a business or its assets.
You may have to pay CGT if, for example, you:
Sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset receive money from an asset - for example compensation for a damaged asset.
You don't have to pay CGT on:
- Your car
- Your main home - provided certain conditions are met
- ISAs or PEPs
- UK Government gilts (bonds)
- Personal belongings worth £6,000 or less when you sell them
- Betting, lottery or pools winnings
- Money which forms part of your income for income tax purposes
There are some points to bear in mind:
If you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT.
You can't give assets to your children or others or sell them assets cheaply without having to consider CGT.
If you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT - for example you cannot set a loss on selling your car against gains from disposing of other assets.
If someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal.
Self Assessment Tax Forms
It is important that your self-assessment forms are completed on time and accurate information is included. Otherwise HMRC will impose severe penalties.
For many individuals that don't run their own business filling out these forms can be the source of a great deal of worry. Let TaxSense fill out the forms for you and ease the worry.
Whether you are a buy-to-let landlord, offer holiday home lets or are renting out a room, there are specific schemes that allow you to offset expenses against your rents. Margins can be extremely thin it is therefore extremely important that you should be claiming all your allowable tax breaks.
VAT - Special Schemes
Our service includes everything from registration, processing returns, classification queries and being on hand to handle enquiries raised during an inspection. To help ease the burden of having to pay VAT on your own sales before you receive payment a number of special schemes are available. These include Cash Accounting, Flat Rate Scheme, Annual Accounting and Special Schemes for Retailers.
VAT is a complicated area and for this and other reasons regular inspections of business VAT records are carried out each year by HMRC. If an inspector finds that irregularities in your records or challenges the way your have calculated the VAT on your returns, and you have underpaid VAT they will impose an assessment (a bill), charge interest and possibly charge penalties. It is therefore extremely important that you understand which VAT rules apply to your business.
TaxSense can help review your tax records to make sure that you are interpreting the rules and entering your returns in an appropriate manner.
Construction Industry Scheme (CIS)
The CIS scheme was radically overhauled on 6 April 2007 when the old paper based scheme was replaced with a new paperless scheme. These changes left many caught in what seemed to be a series of pitfalls and penalties.
CIS applies to all businesses in the Construction Industry - builders, developers, contractors, plumbers, electricians, roofers, bricklayers, carpenters, glaziers and many other trades - in some cases it also applies to services like landscaping and cleaning. However it does not apply to professional services like Surveyors and Architects.
The CIS scheme places and obligation on Contractors to check registration details for Sub Contractors working for them, and in some cases to deduct tax from them at source.
It is important to note that a business may be a Contractor and a Sub Contractor at the same time.
Central to CIS is the issue of employment status - is someone working for you employed or self employed? There are strict rules to be followed for this, and you should not just assume someone is self-employed. This must always to checked out and the responsibility for these checks is the contractor not the sub-contractor. Regular reviews should be carried out by Contractors on the classification of each worker and ensure self-employed status is correct.
Penalties and Back Tax
Regular inspections of contractors records are carried out by HM Revenue and Customs. Where HMRC think that a sub-contractors are being treated as self employed, penalties and a back tax bill will follow.
You can strengthen the self-employed status of workers by following some simple steps. For example drawing up a contract that reflects genuine working arrangements, these and many other steps, can be easily implemented.
TaxSense can help guide you through the CIS maze.
If you start-up a business where you are a sub-contractor in the construction industry, you must inform HMRC immediately. They will issue you with a unique taxpayer reference number that will identify you on their system.
If you are being paid 'under deduction' you should receive a monthly statement from the contractor detailing showing how much you have been paid and the deductions that have been made from your payments. For irregular payments you can ask for the statement to be made with each payment.
One of the biggest concerns with the CIS scheme amongst sub-contractors is in the process for claiming back some of these deductions. Particularly where a sub-contractor is not registered because they don't meet the HMRC tests. The deductions will have been made at the higher rate. In order to simplify this process it is important that sub-contractors keep a complete record of all the deduction statements and the bank account statements where you banked any cash or cheques from these payments.
Even when a subcontractor has made payments through the 'under deduction' scheme they can still end up with a year end tax bill.
TaxSense can help you calculate your tax bill and where appropriate help you get a tax refund.
Being a sole trader is the simplest way to run a business. You are personally liable for any debts that your business runs up, which makes this a risky option for businesses that need a lot of investment. There are many tax breaks that apply to sole traders and TaxSense can help you make sense of them.
Each partner is self-employed and takes a share of the profits. In a partnership two or more people share the risks, costs, and responsibilities of being in business. Each partner can share in the decision-making and is personally responsible for any debts that the business runs up.
Unlike a limited company, a partnership has no legal existence distinct from the partners themselves. If one of the partners resigns, dies or goes bankrupt, the partnership must be dissolved but the business may not need to cease.
A partnership is a relatively simple and flexible way for two or more people to own and run a business together. However, partners do not enjoy any protection if the business fails.It's a good idea to draw up a written agreement between the partners. TaxSense can help advise you on the options available to you in forming a partnership.
Limited companies exist in their own right. This means the company's finances are separate from the personal finances of their owners. Shareholders may be individuals or other companies. They are not responsible for the company's debts unless they have given guarantees (of a bank loan, for example). However, they may lose the money they have invested in the company if it fails.
Corporation Tax is a tax on your company's taxable income or profits. There are many ways to structure your company to help minimise your tax liability.
TaxSense can help you minimise the corporation tax a company pays.
Selling a Business
Selling a business has two crucial elements;
Finding potential buyers and negotiating a price
It's essential to make your own estimate of value at an early stage so that you are clear about the value you can expect to realise and the most appropriate methods to manage the sale.
TaxSense can help by preparing the businesses key financial figures such as;
- Value of Assets
- Total Debts
This information is an essential part of the 'sales memorandum' the initial marketing document you use to spark interest in your business. It will include similar financial figures for previous years and how they have changed. The aim of this document is to interest potential purchasers, so that they want to know more
Key factors affecting the value of your business
- Historical, current and projected profits and cash-flow.
- How well you control costs.
- State of the economy in general and your market in particular
- How similar businesses are being valued.
- How many potential purchasers are interested in the business.
- Goodwill and intellectual property such as patents.
- Strength of customer relationships - and how profitable they are.
- Your business' growth potential.
Assets and liabilities
- Value of assets such as property, equipment, debtors and stock-in-hand.
- How full your order book is.
- Level of debt and other existing liabilities.
Management accounts are aimed at helping you to plan your business and make decisions about key areas such as sales, margins and stock. Used correctly management accounting can help you run your business more effectively.
Monthly or quarterly management accounts are a very useful tool in identifying changing trends in your business finances. If these positive or negative trends are identified at an early stage it is much easier for the business owner to take early action. Additionally, more and more lenders require management accounts as evidence that the business is staying on track with its business plan.
Management accounts will enable you to:
- better manage your resources
- identify trends in your business
- compare your accounts with original budgets or forecasts
- highlight variations in your income or spending which may require attention
they should be used for the following
- recording business transactions
- measuring results of financial changes
- projecting financial effects of future transactions
- preparing internal reports in a user-friendly format
Planning and Control
- collecting cash
- controlling stocks
- controlling expenses
- co-ordination and monitoring of strategy/performance
- using cost information for pricing, capital investment and marketing
- evaluating market and product profitability
- evaluating the financial effect of strategies and plans
Cashflow forecasting enables you to predict peaks and troughs in your cash balance. It helps you to plan borrowing and tells you how much surplus cash you're likely to have at a given time. It identifies the sources and amounts of cash coming into your business and the destinations and amounts of cash going out over a given period
Many banks require forecasts before considering a loan.
This shows how your business has generated and disposed of cash during a given period of time.
This used as a tool to predict the expected rises and falls in cashflow over the coming year.
This is a written guide to starting and running your business successfully. This plan will encourage loans, promote growth, and provide a map for you to follow. A business plan is a useful tool for both new and established businesses. For an already established businesses it can be the focal point for a re-focussing of the business direction. For more information on business plans please contact us
Because of the global credit crunch and the subsequent liquidity squeeze most banks are changing the way they think about their customers particularly the self-employed. Lenders are taking a much more negative view of Self Employed business people, than they did just a few short months ago. This means that if you are self-employed and require a mortgage, loan or overdraft, then you are going to be asked much more about your personal and business finances. The same applies to company directors. Lenders will want to see more substantial proof of income, evidence that your business is going to continue to be successful, and that you are in control of its future direction.
If you need to borrow money then the banks will want to see your business plan and how your finances are projected to grow. We can help in the preparation of Profit/loss, cash-flow forecasts and Business plans.
On going support
They will also want to measure how your business is performing against your forecasts, we can help in the preparation of Management accounts.
See Bank Loans.
The changes in the Global credit markets are already effecting how banks and building societies assess risk. 100% mortgages have now been withdrawn from the market. Small business owners (self-employed and some company directors) are increasingly being re-classified as higher risk. Banks and building societies are now looking closer than ever at the financial position of the self employed. TaxSense can help prepare information that will support any mortgage application.
Before August 2007 most people had never heard of the term credit crunch. Now it's everyday news. But what does it mean to you? If you have recently taken out a 2 or 3 year fixed rate mortgage deal, when it now comes up for review everyone is being asked to more detail about their incomes. Very often the unprepared small business owner (self-employed and some company directors), finds themselves caught out. If you can't substantiate your income or provide the evidence to support your business model, then you are likely to be asked to pay a higher interest rate and higher fee. In some extreme cases the lender may refuse to renew. For the unprepared small business owners these situations can be extremely worrying. Don't let this happen to you. TaxSense can help you prepare information to support any re-mortgage application.
Because of the changes in global financial markets banks are hoarding cash. This is causing banks to review how and whom they lend money to. Small Business owners (self-employed and some company directors) are increasingly becoming seen as a higher risk category. This means often they are not just asking for much more detailed evidence of their incomes, but are know probing more deeply into how you business is doing and what your plans are for maintaining your business in possibly troubled times. TaxSense can help prepare information that will support any refinancing project. (Also See Bank Loans).
How Taxsense can help
We are local to you no matter where you live
If you live outside our immediate geographical area, don't worry we are very effective at helping people using the telephone and email. Our 'Distance accounting' systems are designed to work with people who operate in any area of the UK. We also visit many areas regularly and can arrange a face to face meeting at various times of the year.
Convenience of a telephone call or email
We understand that to maintain a happy relationship with our clients we need to be accessible and keep in regular contact. By doing this we are always local to you and can deal with all your accountancy needs.
Contact TaxSense now for a free without obligation quotation.