Accountants who care

Transcription

1 Accountants who care Decimal Accountancy is a forward thinking firm lead by a qualified and experienced Chartered Management Accountant, based in London. We provide a personalised business service to support your business objectives and provide a value driven bespoke service. Our team is easily accessible and approachable. Lowest possible cost for highest possible professional standard

2 Our Services At Decimal Accountancy we understand that every business is different and faces its own unique challenges. That s why we make it our business to get under the skin of your company to understand your needs and provide truly flexible accountancy & taxation services designed especially with you in mind. Our services include: Accountancy Bookkeeping Accounts preparation Management Accounting Payroll Taxation Value added Tax Personal Income Tax Construction Industry Tax (CIS) Corporation Tax Capital Gain Tax Consultancy Company Secretarial & Start Up Services ISO 9001, & OHSAS SAFE Contractor Scheme CHAS SIA Approved Contractor

3 Accountancy Our accountancy service can be tailor-made to suit to the requirements of you and your business. If you are a self-employed construction worker, you will probably only require a once a year service where we prepare and submit your Personal Income Tax Return. For larger businesses you may require us to be more involved, taking care of your quarterly VAT preparation, operating your payroll, preparing statutory accounts and preparing and submitting your Corporation Tax Return. However simple or complex your requirements may be we pride ourselves on being able to offer an attentive, professional, timely and affordable service. Bookkeeping. Accounts preparation. Management Accounting. Payroll.

4 Bookkeeping We understand that running a successful business is not easy at the best of times and worrying about maintaining sufficient bookkeeping records may not be your priority, particularly if you are a new business start-up. It is important however to be aware of your bookkeeping responsibilities in relation to taxation and Value Added Tax (VAT). Not only is good bookkeeping necessary to satisfy H M Revenue & Customs (HMRC), but it will also benefit your business in the following ways: Managing and keeping control of your business finances. By keeping track of who owes you money and how much you owe to creditors you will have an invaluable resource when managing cash flow. By maintaining accurate accounting records, you will be in a better position to plan the growth of your business i.e. affordability and risk assessment. Helps with the preparation of your annual accounts by ensuring more accurate and timely accounts production. Managing a well maintained bookkeeping system is relatively straight forward and we will be very happy to advise and help set you up on the right path. If you really would rather concentrate on the fundamentals of your business we do offer a very affordable bookkeeping service.

5 Accounts Preparation Every trading entity in the UK, whether you are a sole trader, partnership or limited company, is required to report to H M Revenue & Customs (HMRC) detailing its trading activities within the last accounting period. The reporting requirements are different depending on whether you are incorporated or unincorporated and by the level of trading activity. Not only are annual accounts preparation a necessity in satisfying your reporting responsibilities, they are also an invaluable resource in providing an assessment on how your business is progressing and financial stability. Letting Decimal Accountancy take care of your year-end accounts preparation which means that you can concentrate on running your business while we take care of the time consuming and stressful task of preparing accurate and reliable accounts. Sole Trader & Partnerships As a sole trader or partnership you are required to prepare a year-end set of accounts, the complexity of these accounts will be governed by the level of

6 Accounts Preparation trading and other factors such as level of staff, VAT registration, bank loans and finance agreements, amongst many others. Private Limited Company Limited companies do not fall within the self-assessment system for individuals and are instead governed by the Companies Act As a director of a limited company you are required to maintain accurate accounting information and file statutory accounts in accordance with the Act. The preparation of company accounts can be a daunting task if you are not familiar with statutory reporting requirements. We can help and advise of your responsibilities and take the worry out altogether by taking care of the accounts preparation for you. Not only will we prepare a set of accounts but we will also ensure that all filing deadlines are met and that minimal information is made public via Companies House so that your business stays your business!

7 Management Accounts Once you have started a business and commenced trading it is easy to focus on the development of your business and overlook the importance of operating an effective accounting system. Many businesses concentrate on expanding their business and wait for their accountant to tell them how they have performed at the end of the accounting period, these accounts may be prepared several months after the period in question leaving you ill-informed on how successful you have been for well over a year. Management accounts are an interim set of accounts prepared on a regular basis i.e. monthly, quarterly or less often six monthly. The purpose of management accounts is to provide you with accurate accounting information throughout the year so that you can: Monitor the profitability of your business. Keep track of your debtors and creditors. Improve your cash flow by using budgets. Monitor your overheads and reduce expenses where possible. Prepare for VAT, PAYE/NIC and tax liabilities.

8 Management Accounts The above are all vital components for consideration when operating a successful and in particular, expanding business. We can offer a basic management accounting function that will provide you with accurate profitability reporting or a more bespoke service where we can manage your cash flow by managing your supplier accounts and also liaise with debtors to arrange payment.

9 Payroll If you are an employer, or are thinking about employing staff, then you will be required to register as an employer with HM Revenue & Customs (HMRC). Once you have registered you are then able to operate a Pay As You Earn (PAYE) scheme i.e. deducting Income Tax and National Insurance at source from your staff. You will be required to file monthly employer forms and pay the deductions to HMRC by a specific deadline, if either of these requirements are late, you will receive an automatic penalty and interest will be charged on the late payment. Administering your payroll can be a time consuming task and it can be difficult to keep records up to date and be fully aware of all legislation. We offer a very competitive fixed rate fee for our payroll service and will take care of the following: Register you as an employer with HMRC. Process your staff wages on a weekly or monthly payment basis. Provide you with pay slips to distribute to your staff. Advise of net pay due to each employee.

10 Payroll Advise of PAYE / NI deductions made from your staff and when to pay to HMRC. Amend all staff PAYE codes in accordance with HMRC. Calculate staff benefits in kind and associated employers NI charge. Maintenance of staff holiday calendar. Completion and submission of end of year Employer Annual Return.

11 Taxation If you are setting up in business then you must give consideration to the tax burden that will fall due at the end of your accounting period. Unexpected tax payments can have a serious effect on a business s cash flow and its ability to trade. We often hear from new clients that they are having trouble agreeing credit with their suppliers as they have defaulted on payment due to a large unexpected tax payment falling due. Here at Decimal Accountancy, we deal with all aspects of tax planning, whether it be for a business start-up, an established sole trader or multi-million pound turnover clients. The areas we cover are: Value added Tax. Personal Income Tax. Construction Industry Tax (CIS). Corporation Tax. Capital Gain Tax.

12 Value Added Tax If your business turnover (sales) have reached a level that exceeds the mandatory Value Added Tax (VAT) threshold then you must register for VAT. Once registered you have to charge VAT at the standard 20% rate on all standard rated sales, this then has to be paid over to HMRC after deducting any VAT incurred on expenses on a quarterly basis. If you do not register for VAT by the due date then you will become liable to penalties and interest charges as well as having to account for and pay and VAT that should have been payable from the time you should have registered, some of which may not be recoverable from your customers. There are many special schemes that are designed to simplify the administrative burden and cash flow problems that VAT may cause a small business:

13 Value Added Tax Cash Accounting Under the usual method for accounting for VAT you may be required to over pay VAT charged to customer for which you have not been paid. The cash accounting scheme is available to businesses whose turnover is within the limits of the scheme and allows a business to pay VAT over to HMRC only when payment has been received. Flat Rate Scheme Businesses that are eligible to join this scheme can simplify the VAT calculations by simply applying a flat rate percentage to their gross sales. The flat rate percentage will be determined by the rate table issued by HMRC and is specific to your industry. Annual Accounting Generally a business is required to submit a quarterly VAT Return and pay the liability on a quarterly basis. The annual accounting scheme simplifies this process by the business agreeing an annual liability and pays this over via monthly installments. At the end of the year an annual VAT Return is submitted and any balancing liability is paid or over payment repaid.

14 Value Added Tax Retailers Scheme When operating the standard VAT system a business is required to keep a record of every transaction. For some businesses this may be an unrealistic burden. To soften the administrative burden, affected businesses can use one of the schemes set up with retailers in mind. We offer a VAT service where all you have to do is arrange a time to drop off your accounting records for the VAT period in question and we will prepare and electronically submit your VAT Return for you.

15 Personal Income Tax H M Revenue & Customs (HMRC) issues Income Tax Returns to individuals in the following circumstances: To individuals with complicated tax affairs. To individuals who are self-employed, if trading as a partnership the business will also be issued with a Return. To individuals who receive income from either land or property, even if you make a loss on your rental income, it should still be declared. To individuals who receive income from overseas. To individuals who receive income without tax being deducted at source. If you are issued with a notice to complete an Income Tax Return, you must declare all income the you received during the tax year in question; even if some of it has been taxed at source i.e. Pay As You Earn (PAYE). If you have not been issued with a notice to complete an Income Tax Return but believe that you fall into any of the above categories above you should notify HMRC that you wish to complete a Return.

16 Personal Income Tax The UK system of tax declaration is called Self-Assessment, the purpose of which is to put the responsibility of reporting on the tax payer, it is the tax payer s duty to self-assess. Should HMRC become aware of any income received and remains undeclared, you could incur a series of penalties and interest for each year that you did not self-assess.

17 Construction Industry Tax If you work within the construction industry you will either be a subcontractor, a contractor, or possibly both. Either way you will have to familiarise yourself with the rules specific to the construction industry regarding income tax deductions at source. Subcontractors If you are a subcontractor you will need to be registered as both self employed and as a subcontractor within the Construction Industry Scheme (CIS) HMRC so that when you undertake a new contract your contractor will be able to contact HMRC and start making deductions at the specified rate of either 20% or 30%, unless you hold gross status. Every time you receive a payment from your contractor it will be after they have deducted income tax at source at the specified rate on the labour content of your invoice. At the end of each month you will receive from the contractor a statement detailing the total gross pay and income tax suffered at source. At the end of the tax year when you are completing your Income Tax Return the amounts suffered at source can be deducted from the total liability, this can often result in a repayment of tax.

18 Construction Industry Tax At Decimal Accountancy we can help subcontractors in the following way: Register you as a subcontractor with HMRC. Prepare your Income Tax Return at the end of the financial year. Obtain any repayment of tax (our fees can be deducted from the repayment to preserve your cash flow). Contractors If you are considering taking on labour, you are required to register with HMRC as a contractor. Before you pay a subcontractor you will be required to contact HMRC to verify the subcontractor and confirm how much income tax you must deduct from the payment, either 20% or 30% should the subcontractor not hold a gross payment status. At the end of every month you are required to report to HMRC how many subcontractors you have paid and how much you have deducted at source and as a result have to pay the deductions to HMRC.

19 Construction Industry Tax You are also required to provide subcontractors with a monthly statement detailing the payments you have made to them and how much income tax has been deducted so that they can offset the deductions from their year-end income tax liability. We can help contractors by: Registering you as a contractor with HMRC. Verifying subcontractors and advising how much tax to deduct. Completing the monthly Contractor Returns and advising how much to pay. Providing CIS vouchers to distribute to subcontractors.

20 Corporation Tax If you are a director of a limited company, you should be aware of your obligations to prepare and submit a Corporation Tax Return. The Return, in conjunction with the company accounts and corporation tax computations, provides H M Revenue & Customs (HMRC) with information on how the company has traded during the most recent accounting period and what you believe is the company s liability to Corporation Tax for the period. Preparation of corporation tax computations can be quite complex and if you are not sure of all relevant tax rates and allowances, preparation of the Return can be stressful and if done incorrectly, could cost your company unnecessary additional tax.

21 Capital Gains Tax Capital Gains Tax (CGT) is designed to capture transactions that fall outside of the general income tax legislation and are often charged to tax at a lower rate. A common example of a transaction that falls under CGT rules is an individual selling a second property that has in the past been rented to tenants. The capital gain is the difference between the sale price (after adjusting for costs on sale) less purchase price (after adjusting for costs on purchase). This may seem pretty basic but there are additional factors to consider: How long did you own the property. Did you ever live in the property. How long did you live in the property. Has there been an enhancement expenditure. All of the above points will affect how much of the gain is chargeable to CGT and with these sort of transactions generally being of high value, any omission of information in the calculation could cost you large amounts of additional tax. No CGT computation is as basic as deducting cost from sale as there will always be additional factors to consider.

22 Capital Gains Tax There are many instances of transactions that may be classed as a capital gain instead of income. It is important to be aware of this as the basic rate for capital gains can be as low as 18% compared to 20% income tax and 28% compared to 40% respectively for higher rate tax payers.

23 Consultation Services We are indeed a one stop destination for business consultancy services providing complete solutions. We offer guidance for new start up business from company formation to run a business. Our aim is to help you choose the best of the best operational systems so that you can have the finest business management systems today for a successful and better tomorrow. Company Secretarial & Start Up Services ISO 9001 : Quality Management System ISO : Environmental Management System ISO : Information Security Management Systems OHSAS Occupational Health and Safety Assessment Series SAFE Contractor Scheme CHAS (Contractors Health and Safety Assessment Scheme) SIA (Security Industry Authority) Approved Contractor Scheme

24 Company Secretarial Services If you already trade as a limited company or are considering trading as a limited company we offer a company secretarial service that is designed to help you meet all of the statutory compliance requirements. Company Formation We are able to create and register a limited company with Companies House within 24 hours. Within this service we will: Search to see if your preferred company name is available and advise of alternatives should your chosen name already be registered. Register the officers of the company including the director(s) and company secretary. Register the issued and authorised share capital of the company. Register the share holders and their respective holdings. Register the company s registered office with Companies House. Provide share certificates to shareholders. Provide the Certificate of Incorporation.

25 ISO 9001 : Quality Management System ISO 9001:2015 sets out the criteria for a quality management system and is the only standard in the family that can be certified to. It can be used by any organization, large or small, regardless of its field of activity. In fact, there are over one million companies and organizations in over 170 countries certified to ISO This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. Using ISO 9001:2015 helps ensure that customers get consistent, good quality products and services, which in turn brings many business benefits.

26 ISO : Environmental Management System ISO 14001:2015 sets out the criteria for an environmental management system and can be certified to. It maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization regardless of its activity or sector. Using ISO 14001:2015 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.

27 ISO : Information Security Management Systems ISO 27001:2013 specifies the requirements for establishing, implementing, maintaining and continually improving an information security management system within the context of the organization. It also includes requirements for the assessment and treatment of information security risks tailored to the needs of the organization. The requirements set out in ISO 27001:2013 are generic and are intended to be applicable to all organizations, regardless of type, size or nature.

28 OHSAS Occupational Health and Safety Assessment Series OHSAS is a truly international standard which sets out the requirements for occupational health and safety management good practice for any size of organization. It provides guidance to help you design your own health and safety framework allowing you to bring all relevant controls and processes into one management system. OHSAS can also be adapted to all types of organizations to help eliminate or minimize operational risks and hazards. The standard is designed to help you create the best possible working conditions in your organization helping you to meet legal, industry and customer requirements.

29 CHAS The CHAS health and safety assessment scheme is a pre-approval scheme to allow contractors to show potential clients that they meet the required health and safety standards. The main purpose of CHAS is to avoid repeated applications by suppliers and contractors to become approved as local authority suppliers and to improve health and safety in small to medium sized businesses. Whilst the CHAS assessment scheme is a local authority and government backed scheme, it can be used by any organisation looking to short list suppliers and contractors and can save time and money for all parties.

30 SAFE Contractor Scheme The Safe Contractor Scheme has been developed to avoid each individual contract having to assess individual suppliers health and safety competence. As all Safe Contractor buyers accept proof of competence, when becoming Safe Contractor approved then duplication is reduced. Safe Contractor has been developed and refined by Government Health and Safety and Procurement Professionals, with the support of the Health and Safety Executive, since The Safe Contractor scheme was initially developed by as SupplyLine, and later developed into Safe Contractor, and is now available for use by any public and private sector organisation when short listing Contractors, Suppliers and Consultants who apply to work for them as an aid. The scheme provides information and assurances about the health and safety systems and competence of the organisations who have been Safe Contractor accredited or assessed.

31 SIA Approved Contractors Scheme (ACS) The Security Industry Authority (SIA) introduced the Approved Contractor Scheme (ACS) to raise performance standards within the security industry. The ACS is the quality benchmark within security, and sets out criteria that companies must adhere to in order to be SIA ACS Approved. Whilst currently being a voluntary scheme, many security companies are finding that existing and potential clients are requiring security service providers to be SIA ACS accredited. Becoming an SIA ACS Approved company demonstrates to your customers that your company has a commitment to providing a quality service, and therefore gives you a competitive edge.

32 Pricing & Packages Limited Company Bookkeeping VAT Payroll Self Employed Consultation Service Monthly Billing Starting from * 22 Annual Billing Starting from *minimum 5 payslips per month or 15 for director's payslip per month