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.

What Are Capital Allowances?

When you purchase large equipment or vehicles for your business you are not able to take the full cost of these in the first year and this means you are not able to reduce your taxable profit for the cost of the asset. However, HMRC has mechanisms available to claim a tax deduction for these items. See our previous blog post of Fixed Assets to see the accounting treatment for these items.

Expense Accruals

You may have heard your accountant talk about accruals in the past, or even just seen them in your financial statements and have no idea what these things might be. Accruals are a vital accounting concept that ensure costs are recognised in the period that they occur, this may not line up with when they are actually paid.

Statutory Payments

There are a number of statutory payments that your employees may be entitled to. These can be due if someone’s become a parent, are off work sick or are laid off.

We are going to cover statutory payments for parents and for sick pay. To qualify for statutory payments, the individual must be an employed earner, ie someone working for an employer who is liable to pay secondary Class 1 National Insurance contributions on their wages.

Why outsource your Financial Controller?

A Financial Controller is a key part of the finance function of your business, they ensure the accounting department is following the correct procedures and accounting standards, produce month end reports and help the directors of the business make key business decisions. Outsourcing this function has a number of potential benefits for a business which will be covered below, and while it may not be right for all companies it is worth considering as you develop and grow.

Fixed Assets and Depreciation

As you start running your business you may hear the term ‘Fixed Assets’ or ‘Capital Assets’ thrown around without really understanding what they are or how they are accounted for. It will greatly improve your understanding of your accounts and your businesses performance if you understand how Fixed Assets and Depreciation works.