07518553314

i.m.bookkeeping

info@imbookkeeping.co.uk

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Opening hours:

Monday - Friday

8:00 - 16:00

Weekend and bank holiday closed

Our bookkeeping services

VAT
Tax Return
Payroll

We offer comprehensive bookkeeping services to sole traders, partnerships and limited companies. We will regularly need invoices and receipts regarding income and purchases, bank account statements etc. So, based on these, we can do everything necessary in relation to bookkeeping: 

  • Preparation of financial statements
  • Preparation for year end
  • Booking and checking sales, purchase and fixed assets invoices
  • Profit and loss statements
  • VAT returns
  • Tax returns 

In contrast with many other bookkeeping companies, we do not use excel spreadsheets. We use professional desktop and cloud-based accountancy software for all of our bookkeeping and financial services. This gives us the ability to efficiently prepare accurate, legally compliant financial statements and documents which we can share easily across the business and with our clients.

VAT

AIn England it is not compulsory for businesses to register for VAT, unless their income for 12 months exceeds a specified amount. This amount at the moment is GBP 85000, and if exceeded, the business must register for VAT with HMRC. If a business fails to complete the obligatory registration within a month, there will be a fine depending on the amount of payable VAT and the time it exceeded the deadline. This will be in addition to any VAT calculated as payable.

What you need to know

  1. The English VAT registration number is equivalent to the EU VAT number when completing invoices to the European Union. If both partners have EU VAT numbers, they are able to issue invoices to each other VAT free.
  2. Without a VAT registration number, the business is a VAT exempt entity that issues invoices without VAT to the EU.
  3. Purchasing from the EU without a valid VAT number, the business must pay the amount of the given country’s VAT as the partner is not eligible for a net invoice.
  4. From 1 January 2016, the VAT rules for place of supply changed in the EU for sales for digital services from businesses to consumers. This means the VAT content of the seller’s country must appear on the invoices and paid to the tax authority of that country. This is called MOSS (Mini One Stop Shop). In order to make the process easier, the registration allows for the return and payment to be made to the member state via HMRC. You must be registered for UK VAT before you can apply for the MOSS scheme.
  5. In the UK the VAT return submission is due every three months i.e. quarterly. The end of the quarter does not have to be the same as the business calendar year; when registering the end of the first period can be chosen by business, and the period which marks the beginning of the quarter is shown on HMRC VAT certificate.
  6. In case of the EC sales and MOSS return, a quarter is equivalent to a calendar quarter. 

What our company does

  • We choose the best VAT schema for the company based on their price, income and nature of the business
  • Administration of VAT registration
  • VAT return and VAT administration
  • VAT returns, for European Union marketing (EC-sales list), filing, either monthly or quarter
  • Completing MOSS registration and quarter returns
  • In case of import-export, registration of EORI number
  • Monthly completion and administration of intrastat returns 

Tax return

1. Private person and sole traders

Self-assessment

The following need to complete self assessments i.e. complete and submit a tax return to HMRC:

  • sole trader
  • employee with more than one employment
  • director,
  • any individual with multiple sources of income  

The return must be completed and submitted by 31st January of the following year. Failure to meet the deadline can incur fines in excess of £1,600.

The completion of self-assessment tax return is time consuming and can be stressful, particularly if you do not have much experience. Many businesses struggle to complete their yearly returns accurately and on time.  

What we can help you with:

  • Completion of return and submission on time
  • Consulting and keeping in touch with the tax office, and so taking away the burden of the time consuming communication with the authorities and also staying up to date with current requirements. 

2. Partnership Companies (Partnership, Limited Partnership)

In the case of partnerships, they must submit a tax return for the members and for the business. The deadline for the return is 31 January in the year following the relevant tax year. If the company is a limited partnership, the business must also prepare and submit a Confirmation Statement to Companies House. This deadline is 12 months after the formation of the company however you still have 14 days after the deadline to submit your statement. 

3. Businesses (Limited Company, Limited Liability Partnership)

Businesses that have been registered in England have to submit three returns in every year. Two returns need to be submitted to Companies House and one to HMRC.

Returns submitted to Companies House (Registry court)

  • Confirmation Statement - this holds business information i.e. the name of the owners, their shares, name of the director/s, the address of the business and the nature of the business. The deadline for submission is 12 months after the date the business was registered however you still have 14 days after the deadline to submit your statement.
  • Confirmation Statement - this holds business information i.e. the name of the owners, their shares, name of the director/s, the address of the business and the nature of the business. The deadline for submission is 12 months after the date the business was registered however you still have 14 days after the deadline to submit your statement. 

It is crucial to understand that whether the business is considered active or dormant, it is compulsory to submit both returns.

If the Confirmation Statement is not submitted, three months after deadline date the company ceases to exist. 
 
If the company fails to submit their Annual Accounts by the deadline, the business can be fined and the director could face disqualification, which will be published on the Companies House website. 

Fines for late submission of Annual Accounts:

 

Late for 1-30 days  £ 150
Late for 31 - 90 days  £ 375
Late for 91 - 180 days  £ 750
Late for 181 and above days  £ 1500

 

If the return is late for the second time, the above prices double up.

Submission of returns to HMRC (the tax office)

a) Limited Liability Company

Corporation tax: 19% percent of the profit
Deadline for submission: 12 months after the end of the company’s tax year
Deadline for payment: 21 months after the company registration date
 

b) LLP 

Partnership tax return: It’s the members’ responsibility to pay tax on the income made from their partnership through submission of a tax return.
Deadline for submission: 31 January following the year of the relevant tax year. 

Payroll

Payroll includes the records of employees’ salary/wages and related tax and NI liability. This also includes the employers’ data and payment obligations. Our comprehensive payroll services include:

  • Calculate weekly, fortnightly or monthly payroll
  • Filing mandatory statements
  • Calculation of monthly national insurance and income tax due to HMRC
  • filling and electronic submission of the appropriate forms to the tax office 
The only thing you need to do is make the payments!

Important information

  • The employer must pay the applicable minimum wage to their employees. If this does not happen, the company’s name will appear on a website called Named and Shamed. This is a UK government website.
  • The employer must have Employer Liability Insurance.