Abishel Accounting provides accountancy services to contractors and small limited companies that require high flexibilities when dealing with accountants. Sometimes people want answers on the go without the stress of booking appointments and waiting in queues to speak to their accountant. At Abishel Accounting, we work with your availability. We have taken away the red tape to ensure that our clients enjoy that peace of mind needed to focus on their work. Our services at Abishel Accounting are purely designed around our expertise that we have acquired through professional education and most importantly, experience. Our services are based on what we love to do and what we do everyday. The guarantee you get therefore is a range of flexible services that are delivered with passion and consideration.
Logical & Analytical
Systematic & Efficient
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Adaptable & Collaborative
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FAQ'S - Abishel Accounting
The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021: The UK government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021. For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. They also need to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from their own funds. When claiming for periods from 1 May 2021 onwards, eligible employees must have been employed on 2 March 2021 and had a Real Time Information (RTI) submission to HMRC notifying a payment of earnings for that employee by their employer between 20 March 2020 and 2 March 2021.
Generally anyone who has been sent a request to submit a Self Assessment in the UK should do so within the specified deadlines.
Requests are usually sent to:
* Self Employed
* Partners in a Partnership
* Company Directors
* Those in Receipt of Dividend, Investment Income, Rent, Foreign Income
Contact us immediately on 07749036031 if have received a request to submit a self assessment and need help to beat deadline.
* Purchases or Production Materials
* Salaries & Staff Costs
* Subcontractors Remuneration
* Training Expenses
* Travel Expenses (Fuel, Parking, Bus, Train etc)
* Costs of Business Premises (Rent etc)
* Advertising Expenses
* Computer & IT Expenses
* Work Clothes & Uniforms
* Bank Charges & Interests
Capital Allowances will be claimed for things like, Business Machines, Vehicles, Equipment
The best time is beginning of the year. Beginning of the year for taxpayers in the UK is 6 April 2021.
If your tax return is done early, then you will have the longest time to plan how you will pay your tax bill. Due date for the payments will be 31 January 2022.
Having your Self Assessment done early also means you can get to use it when it is still considered valid or a reasonable basis for earnings. This is in cases of moving home, mortgages, loans etc
5 April is the cut off for most contractors. After that they will have to either go on payroll or look for smaller clients that still allow working through their limited companies. It is important to note that if your agency inform you that you are within IR35 for certain clients that you work for, they should have you on their payroll. Any other arrangements will be illegal. If they hand you over to an umbrella company, it should put you on payroll. Any other arrangements will be illegal.
With Umbrella Companies; if they hand you a payslip and it does not say payslip, its not a payslip. Do not get promised more money. That is not payslip language.
Personal liberties transcend the constitution. You can do whatever you want with your properties (including money) unless the law prohibits or limits that freedom. One of those limits is Taxation. Parliament has made sure that they present taxation as a legal duty and as a measure that does not breach human rights. They say it is because taxes are in the public interest and after all, they are progressive (the less you earn, the less you pay)
So the official narrative is, lets deprive ourselves of our properties for the greater good.
A lot of contractors, especially in the healthcare sector are having inquiries being opened by HMRC regarding their relationships and payment arrangements with some Umbrella Companies. The letters are covering at most 3 years depending on the amount of time you were being paid under various tax avoidance schemes being run by some umbrella companies. The best thing to do when you receive these letters is to contact your accountant and disclose to them as much information regarding your dealings with those companies. Disclosures will have to be made to HMRC through their Anti Avoidance Team to that effect.
Going forward, contractors should take extreme care when engaging an umbrella company. Their payslips should look like the usual normal payslips. Their contract should only talk of complying with HMRC payroll rules.
First thing to to know when you open a limited company is that you have opened a Business. Businesses do budgeting and planning. Those who handle their companies as businesses know that a director/shareholder has to declare a salary or dividend after ensuring that the company has enough resources to pay for its expenses and creditors.
For most contractors, the biggest creditor will be HMRC. If the company is left with no resources to meet its obligations, the director will be charged a tax for borrowing from the company.
You can ask your accountant how much you have to leave in the business, but it is more helpful to approach them with your budget list of expenses and your monthly creditors obligations. Only that way a professional can work viable amounts for you.
Most contractors who used to work in the NHS have been informed more than 2 years ago that they fall within IR35 and they need to be paid through payroll. There are other workers who have taken the risk to continue getting paid through their limited companies. This decision is not wise and may lead to inquiries being opened by HMRC in the future.
The risky decision however can still comply with IR35 Regulations but only on few instances e.g;
*You declare all the payments from the NHS work on your payroll
* You have been disputing your employment status and following the proper channels to get it rectified
The correct way of proceeding if you have been assessed to be within IR35 is to go on payroll. The agency should take you onto their own payroll preferably to avoid falling into tax avoidance schemes with some payment intermediaries.
• Write down or consider business expenses for the following month & make sure you do not withdraw that amount
• Consider company taxes & make sure you do not withdraw that amount
• Consider the company’s Direct Debits & make sure you do not withdraw that amount
• Consider the company’s Loan Repayments & make sure you do not withdraw that amount
This is the basics of budgeting and trusting that the company’s bank account is fully capable of meeting the business’ expenses. Allowing the company to pay for its own bills is important; that’s how you separate business and personal affairs
1. Promoting the success of the company
Everything that a director does for the company should be done in good faith. All transactions that they undertake for the company should be in the best interest of the company.
Success of the company can be seen as financial success or success in serving other stakeholders well. Other stakeholders may include HMRC, The community, Creditors, Customers.
This is a fundamental duty specified in the Companies Act 2006
Inorder to achieve the overall company goal a good director should exercise independent judgement. They should take advise from others, but should not delegate the decision making duties to anyone.
A good director should make decisions that considers the interest of the company. They should believe in their own decisions for them to achieve congruence of this goal with the owners of the company.
For contractors, independence may include making the right decisions that ensure that your statutory duties are met on time.
Avoiding Conflict Of Interest.
Under Companies Act 2006, it is a legal obligation for company Directors to avoid situations that can lead them into having direct or indirect interests that conflict with the interests of the company.
Examples of Conflict of Interest;
• The director should not be seen to also be a supplier or customer to the company
• The director should not take advisory or directorship positions with competitors
• The director should not loan out resources to other entities, even themselves to the detriment of the company
A director should not make personal profit from their position. Their job should be restricted to making decisions that impact positively to the company.
To avoid conflict of interest it is a duty of a director to make the board aware if there are any potential conflict of interests, or if they have interests in any transaction as this will help the other directors to ensure that in perfoming their duty the transaction does not just promote the interest of the director but rather the whole company.
These letters are being posted to all businesses incorporated in the UK. They are not a Scam.
A minimum of £40 per year should be paid ONLY if your business Processes Client Personal Information. If your company do not process personal information, you should still go and website and pick the option for "no-fee" payment. www.ico.org.uk/no-fee
In the declaration box, you can simply state that the "company does not process personal information. This letter should be actioned or else ICO will keep writing you and in the future, we suspect there will be penalties for non compliance.
A good director should declare interests in proposed or existing transactions or arrangements with the company. The declaration should be made at a meeting of directors or by a general written notice which should be given to Directors. In the case of proposed transaction one should declare before it is entered into and also in the case of an existing transaction one should also do this as soon as possible.
This duty is not infringed if:
* your interests in the transaction cannot reasonably be regarded as likely to give rise to a conflict of interests.
* an interest has not been declared because you are unaware that you gave the interest or the other directors are already aware of it.
Some people in business would want to believe that their bank statement is enough to present as a true record & presentation of their business affairs.
Well HMRC will disagree strongly with that point of view on the simple fact that;
1. A bank transaction doesnt show the exact product that was bought in the shop. The purchase may not necessarily qualify as a deductible expense to them so a mere bank entry is not proof enough as a business transaction.
2. A bank transaction does not split the products into appropriate categories. You can go in Tesco & buy engine oil for your business car and stationery. The bank will show a single amount and will not classify that amount appropriately for correct disclosure.
3. If your business is VAT registered, a bank transaction doesnt show how much VAT you paid in any transaction. Only a receipt will show the correct amount of VAT claimable from HMRC
The Self-Employment Income Support Scheme (SEISS) grants are payments made by the government to eligible businesses which have been adversely affected by the coronavirus pandemic. The grants are subject to income tax and self-employed National Insurance contributions (NIC)