Limited Company Expenses

Every limited company director has experienced the moment of uncertainty regarding whether they can claim for something they intend to buy or not.

Its important to know what you can claim to avoid paying more tax than you need to, and to make sure you don’t buy things through the company that aren’t allowable business expenses.

Use of Home Expenses - Sole Traders

Let’s be honest here, for a lot of people working from home is the dream. Laptop out, PJs on, sitting the sofa with the dog by your side while you send those emails is the ultimate fantasy for some of us! It also makes life much simpler for some parents and can really benefit those who struggle with the traditional 9-5 role.

We are splitting this topic into two, one post for sole traders and one for limited companies as there’s a lot of information to cover!

Year End Process for Limited Companies

When your company year end comes around and its time to file your accounts it can be a very confusing time with directors often being unsure of the paperwork and information needed.

This guide is intended to make the process a bit easier for the first time directors, and for those that have done it before but still haven’t quite got their heads around it.

VAT Flat Rate Scheme

A lot of people hear VAT, think 20% and stop there. However, there is an alternative way for small businesses to work out how much VAT they need to pay HMRC, and this is called the VAT flat rate scheme, its often shortened to VAT FRS. It is designed to help small businesses reduce their admin related to VAT returns.

Garden Offices

The pros of a garden office are pretty clear for a lot of home workers. Your own dedicated space to work and look out into the garden, less interruptions from family and a safe place to store all your work.

But it can be quite an investment, and for a lot of people the advice regarding the tax rules surrounding them can be quite confusing.

Making a Company Dormant

You may have opened your limited company for one of many reasons, but sometimes you may wish to stop operating under a limited company for a period of time. This can be for many reasons, maybe a return to PAYE work or a break from work all together. For whatever reason is it important to know how to make your company dormant properly.

Should you use a limited company to hold rental properties?  

As is so often the case with accounting and tax issues it depends, however with changes to the tax relief available on finance costs on buy to let properties (see our previous blog post on buy to let property expenses for details) it is a question more landlords are considering. The best option for you depends on a number of factors such as annual income and long term intentions for the property.

Self Assessment - Why Register?

The deadline for registering for self-assessment is 5th October each year. There’s a number of reasons that you might need to register for self-assessment which  we are going to cover in this post.

If one of these has applied to you for the first time between 6th April and the following 5th April you have until the 5th October to let HMRC know.

For example if you became self-employed on 31st June 2018 you must register for self-assessment by 5th April 2019.

Benefits of Cloud Based Accounting Software

A key part of Making Tax Digital (MTD) is the need to move to an HMRC approved accounting software as all VAT returns must be filled electronically. If making the move from spreadsheets to software 2 Sisters Accounting recommends going for a cloud based accounting software like Xero or Quickbooks.

We are certified with both of these software providers and offer an hour free training to any of our clients using them to help make the transition to cloud based accounting be as easy as possible for you.