For most businesses, it is rare to submit a VAT return that creates a refundable value from HMRC. Therefore, when this scenario does occur, many taxpayers do not have their bank details updated for HMRC to make the repayment This article explains how you can ensure HMRC has the correct bank details for processing your VAT refund.
As an employer of workers in the United Kingdom, you have the following methods available to you when paying your payroll tax and national insurance. The time you need to allow for the payment to go through will determine how you pay.
Your Self-Assessment tax bill includes income tax and any Class 4 National Insurance contributions you owe HM Revenue & Customs (HMRC) - if not already deducted via the Pay As You Earn (PAYE) system.
When making payments to HMRC, it is important to factor in the processing time for the payment to reach the HMRC bank account on or before the deadline.
You are legally required to pay Corporation Tax if your company is registered as a limited company in the UK. Corporation Tax is paid on any profits you may have made for the financial year.
If you are a director of your own limited company, it is likely that you bear the sole responsibility of managing your own pension in the most tax-efficient way. Like other investment products, pension contributions will help you save. The good news is that pensions offer much more than this- through their tax benefits.
Xero is cloud-based accounting software with different functionalities for bookkeeping like invoice management, bank reconciliation, inventory, purchasing, expenses, and business management reporting. It also offers small and medium-sized businesses optional add-on solutions like Auto Entry that ease and automate accounting and bookkeeping processes.
A Credit Note is a document sent by a supplier to their customer to notify them that they have been credited a certain amount to reduce the original invoice due. It typically shows the customer you will issue them a full or partial refund for invoices that have already been issued or paid. Some people also refer to it as a reverse invoice, credit memorandum, or credit memo.
In certain scenarios, one or more shareholders may decide to forego their rights to receive a dividend payment. In this case, relevant shareholders must make a formal ‘deed of waiver’ election prior to the dividend being declared - to waive their right to dividends.
Are you having a hard time finding your reference for your Corporation Tax payment this year? You are in luck because this article will guide you in finding the right CT payslip reference. An actual payslip reference number will have seventeen characters. It would read something like this: 1234567890A00108A
Amazon Seller Central Extension- allows you to add your Amazon customers as contacts, their purchases as sales orders, and the items you are selling as products in your Zoho CRM account. You can also track the products that your customers buy and the amount they spend- in real-time.
A ‘Payments on Account’ is an advanced payment made towards the total tax and national insurance liability for individuals that file a self-assessment in the United Kingdom. Those individuals required to meet this obligation, need to make 2 payments. Each payment is half the previous year’s tax bill.
The P11D is a form used to report employment-related expenses and non-cash remuneration (benefits in kind) paid or provided to directors and employees. Most of the employment income is reported via payroll under Pay As You Earn (PAYE). PAYE primarily caters for cash or cash equivalent forms of remuneration, but the P11D system captures the items that fall outside of this process.
Under normal circumstances, a supplier issues a VAT invoice to the client after delivering goods or providing a service. However, in some cases, the customer prepares the supplier's invoice instead and gives the supplier a copy. This kind of commercial arrangement between a supplier and customer is called a Self-Billing Arrangement.
Every year certain taxpayers must complete a tax return declaring their income and capital gains while claiming any applicable allowances and reliefs. Despite a large portion of the UK population having tax deducted automatically from wages, pensions and savings via the Pay As You Earn (PAYE) system (for employees), individuals with other sources of income must report it in a tax return. Technically, Self-Assessment is the system HM Revenue and Customs (HMRC) uses to collect this Income Tax.
In the past 40 years, the accounting world has evolved from paper ledgers to spreadsheets to desktop accounting software. We are now in the cloud computing world, where businesses of all sizes use cloud accounting systems. As a small business, you will have several factors to consider when choosing the best accounting software for you.
Class 1 national insurance contributions are those made by both the employees (primary contributions) and their employer (secondary contributions) as a percentage of the employee’s earnings. An employee’s Class 1 national insurance contributions are paid via their employer’s payroll, aka the PAYE scheme. The amount paid will depend on the following: An employee’s job category letter
Periodic gross earnings of the employee
A dividend is the distribution of a company’s profits (sometimes known as its ‘Reverses’), that is paid to its shareholders. It can either be interim (those that are paid periodically throughout the year like monthly, quarterly) or final (only paid once a year). To recommend and declare a dividend, a company must hold a board meeting, where its directors decide on payment. The process of recommendation, declaration, and payment of dividends is highly controlled by the company's ‘article of association’ and must be documented in two vital documents - board meeting minutes and the dividend voucher.
The provision of food and drink to an employee by their employer is a lovely thing to do. Eventually, it promotes teamwork, loyalty, a sense of belonging and even improves productivity. Taking it at face value makes it look like a simple act of kindness. However, unless it is done correctly, it can cause tax and national insurance compliance issues for the employer.
A Step-by-Step Guide This is an easy-to-understand, step-by-step guide, to opening a successful limited company. But before we dive in, let’s check the legality surrounding it.
Are deadlines creeping up on you? Spondoo is here to ensure you keep on top of things and take control again. These are the important dates you should take note of.
If you are sixteen and over, self-employed (sole trader or in a partnership) and making a profit befitting the ‘small profits threshold’, you are liable to pay national insurance.
The golden rule when claiming business expenses is that the cost must be “wholly and exclusively” for business purposes. So, where do you stand when it comes to food and drink? After all, everyone needs these things to survive. When does it become an allowable expense? Read on to find out when your business can claim food and drink as an expense.
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.
