Xero is cloud-based accounting software that allows you to manage your finances in real-time. Revolut is a global financial app offering banking services to businesses. You can seamlessly integrate Xero and Revolut to sync transactions between the two platforms.
AutoEntry allows you to upload your receipts or invoices through the website, e-mail, or mobile app. Before you start, it is essential to bear in mind that AutoEntry only accepts documents in PDF, JPEG, TIFF, or XLSX/DOC file formats.
Accounting periods for a company with Companies House can have a maximum of 18 months. For example, if you incorporate a company on 1 January 2022 and chose to have a year-end of 31 March, an accounting period cannot be less than 6 months, so your first accounting period with Companies House would be 15months to 31 March 2023
If you are a sole trader (self-employed), limited company, a partner in a limited liability partnership, employer, employee or you take part in any and other business activity in the UK; it is essential to understand allowances, rates and thresholds because they influence the amount of tax that you pay and how you pay it.
You can easily change the bank details for your existing direct debit VAT account without calling HMRC. To change the bank account, follow the following steps:
Using Direct Debit is the easiest way to pay for VAT online because payments are taken automatically from your bank account three working days after the due date on your VAT return - and then take three days to process. Once you set up your Direct Debit, you only need to remember to check if you have enough money in your bank account.
If you claim Child Tax Credit, it is crucial to report any changes to your circumstances to HMRC to get the right amount of benefits on time. It is also important to keep records when divulging changes to avoid possible fines and penalties associated with late reporting.
It is important to know the key dates and deadlines for the tax year to avoid a penalty for missing the deadlines. We have compiled a list of the important dates for the 2022/2023 tax year you need to know. It includes: Tax filing deadlines
Tax payment deadlines
Self-assessment tax return dates and deadlines
Key dates for PAYE
Deadlines for submitting VAT returns
It is quite common to have full or part-time employment while operating a limited company, reasons for this can include: Running your stealth startup before you have the revenues to go out on your own
Working a part-time job while contracting via your limited company
Temporarily on a client's PAYE scheme for a contract that falls inside IR35
Working a full-time job while operating a 'Side Hustle'
For these scenarios, we have tried to detail some areas you should consider.
The following calculations apply to individuals working via limited companies under a contract that falls within IR35, where the obligations fall on the contractor and the contractor's business.
This will typically be where the contractor client is a small business. Contractors providing services to a public sector client, or any medium or large-sized client outside the public sector will not usually need to perform this calculation as the tax and national insurance will be withheld by the client directly.
If you are a contractor, you have no doubt heard of IR35 and like interacting with it in some shape or form. Based on the type of scenario you are engaged in you will have different bookkeeping as well as reporting obligations with HM Revenue & Customs, so this page attempts to explain the reasoning and triggers where you and why you need to let your Spondoo Accountant about the IR35 status of your particular contract
When you work on a contract with a public sector client, or any medium or large-sized client outside the public sector that falls inside IR35, they are obliged to deduct tax and national insurance from your invoice. This process attempts to explain how to account for this in QuickBooks as well as how things are reported to HMRC.
To help you spread the Christmas cheer to your employees, HMRC provides limited company directors with tax incentives on the annual Christmas party! Although tax laws do not specifically address an allowance for an employer providing a Christmas party for employees, HMRC allows limited tax relief against the cost of holding a function for your employees – provided certain conditions are met.
If you want to migrate from Xero to Zoho Books, you must export data out of your Xero account and import it separately into Zoho Books - in the form of CSV, TSV or XLS files. However, you don’t have to figure out how to do it yourself – you can contact the Spondoo accounting systems migration team for accurate and efficient migration services. Follow this 10-Step process to switch over to Zoho Books from Xero effortlessly.
Some VAT registered businesses like second-hand booksellers tend to buy their goods from individuals who are not usually VAT registered themselves, like consumers and private individuals. When this occurs VAT can become a particularly large burden on the profitability of these types of businesses, as traditional rules require these traders to account for VAT on the entire sale value, despite having no ability to reclaim any input VAT. As a result, HMRC designed the Marginal Rate Scheme for these types of traders.
If you earn income outside of PAYE banks and lenders may find it difficult to determine how much you earn when you ask for a loan. In that regard, they may request an SA302 form to verify a stable income. SA302 and Tax Year Overview are both summaries of your total income and tax submitted to HMRC for a given tax year. However, the SA302 is more details and includes the full tax calculations for the year, whereas the Tax Year Overview only details the tax return totals, as well as the payments received by HMRC.
Your Personal Tax Account (PTA) will help you manage your personal tax affairs in one secure place. It also offers a range of other services - like giving you the ability to check, update and manage your details with HMRC online. This article outlines easy steps to help you access your Personal Tax Account.
When loans are provided by an incorporated company to a director or relevant connected party and this loan remains outstanding over 9 months after the end of the accounting period, the Directors Loan Charge applies.
As an Approver in AutoEntry, you are required to approve the expenses submitted by your employees in line with the timings agreed with your Spondoo Accountant. Without performing this approval step, your Spondoo Bookkeeper will not be able to see the expenses reports to be pushed across to Xero, QuickBooks or Sage
As an employee of our Spondoo client looking to be reimbursed for your business expenses, your AutoEntry account will be set up as a Submitter. Your role allows you to upload expenses at any time throughout the month. Your employer should let you know the deadlines for you to submit these receipts for approval – this is typically done monthly.
As a company Director or employee, you can claim tax relief for additional household costs if you must work at home regularly, either for all or part of the week.
As a limited company director - instead of claiming the working from home Flat Rate allowance of £6 per week (£26 per month) under the simplified expenses rules, you can rent out a personal workspace in your home to your limited company. You are allowed to claim certain costs from your company if you provide home office space when working from home.
If you are a self-employed person working from home, there are different work-related business expenses that you can claim. HMRC allow you to charge your 'work from home' costs to your business and claim tax relief on them.
Private limited companies in the UK are either ‘limited by shares’ or ‘limited by guarantee.’ In this article, we will explain the difference between the two structures. We will also assess when to incorporate a limited by shares or guarantee company.
The Replacement of Domestic Items Relief legislation allows landlords to claim tax relief when they replace (not initial purchase) - allowable domestic items. It only applies to landlords (companies, individuals, and trusts) - who let residential property and not furnished holiday lettings.
We all know the types of services where there could be an expectation to pay a tip, such as waiters, taxi drivers, or concierge - but what is the tax man's opinion?
It’s important to know if you are a UK resident as your residence status determines your UK tax liability and entitlement to Income Tax allowances and exemptions.
For VAT purposes, “entertainment” is described as the provision of hospitality of any kind. The costs regarded as entertainment or the provision of hospitality come in different forms like:
Bank feeds automatically import transactions directly into Xero from your bank to ease your bookkeeper's reconciliation process. Once the feeds are operational and working correctly, you do not have to download and import bank statements to get transactions into Xero.
VAT incurred on goods or services used for business purposes can be recovered from HMRC as input tax. However, the basic rule is that you cannot recover the input tax incurred on the provision of business entertainment expenses. Nonetheless, the rules are complex, and VAT can be reclaimed under these two circumstances:
Typically, it will be obvious when you are running a business selling goods, or simply selling personal assets. However, as the tax treatments between running a business and simply selling personal item is drastically different, there are rules and principles to provide clarity in scenarios where the lines start to become blurred.
A sundry expense is a rare and relatively unimportant expenditure that does not fit into standard accounting expenses categories (asset or expense category).
The Cycle to Work scheme is a government initiative that helps people across the UK save money on a bike or bike accessories if they intend to cycle to work. The 'cycle-to-work tax breaks apply equally to directors of one-person limited companies as they do to regular employees of large businesses. In that case, a company (employer) can buy a bike and bike accessories and loan it to the director (the employee) for qualifying business journeys.
The Construction Industry Scheme (CIS) is a tax deduction scheme that sets out rules on payments and taxes from payments that relate to construction work. Under the CIS scheme, all payments made must take account of the subcontractor's tax status as determined by HMRC. Contractors deduct tax from self-employed subcontractors when making payment (20% or 30%) unless the subcontractor has a ‘Gross’ status enabling them to get full pay.
Bank feeds are the online banking feature in QuickBooks that replaces the need to manually import bank statements into the accounting software. The feature lets you connect to your financial institution via QuickBooks using your online banking credentials.
A stock transfer form records the transfer of fully paid shares from one shareholder to another. Stamp Duty is paid on a stock transfer form if you use a stock transfer to buy stocks and shares for more than £1,000.
Xero is an online accounting software platform for small businesses with tools for - tracking projects, reconciling accounts, as well as managing sales and purchase transactions. Starling Bank is a licensed and regulated digital challenger bank that focuses on current business account products. It provides B2B banking and payments services through its Banking-as-a-Service model based on the proprietary technology platform used to power its bank.
A share certificate is a formal certificate issued by a company to a shareholder to certify that they are registered shareowners in the company from a particular date. The Companies Act 2006 stipulates that a company must issue a share certificate when any shares are issued.
Domestic VAT Reverse Charge (aka CIS Reverse Charge) is a piece of legislation that shifts the way the Construction Industry Scheme (CIS) & Value Added Tax (VAT) registered Contractors and Sub-Contractors handle and settle Value Added Tax. Under normal circumstances, a supplier that is registered for VAT simply charges the relevant amount on top of their normal taxable supplies. The responsibility for collecting and paying the VAT over to HMRC remains with the supplier.
When you are trading as a sole trader, or you are ending or leaving a business partnership, you must: Inform HM Revenue and Customs (HMRC) and deregister for self-assessment. Send a final tax return.
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
