Frequently Asked Questions for Newbies

Net Accounting offers a wide range of accounting services including  we provide quite a few services including bookkeeping, tax preparation, payroll processing, business start-up and HMRC Enquiries. 

The cost of our services varies depending on the type and complexity of the work involved. We offer competitive pricing and will provide a free quote for any project.

You can register with Companies House online or via an accountant who can assist with compliance and structure.

We assist with business structure selection, tax registrations, bookkeeping setup, and compliance requirements.

A bookkeeper records daily financial transactions, while an accountant analyses financial data, prepares tax returns, and ensures compliance.

  Proper bookkeeping ensures accurate financial records, helps with tax filing, and allows for better decision-making.

  Yes, we provide payroll processing, calculating monthly PAYE related taxes, tax filing, sending tax reminders and general compliance with employment tax regulations. 

  Yes, we prepare tax returns for individuals, businesses, and non-profits, ensuring compliance with current tax laws.

  We work with a variety of industries, including retail, real estate, healthcare, technology, and consulting services.

  While not legally required, an accountant can help ensure your business stays compliant with HMRC regulations and avoid costly mistakes.

  We can assist with financial record-keeping, tax compliance, payroll processing, and maintaining accurate business records.

Yes, if you earn more than £1,000 per year from self-employment, you must register with HMRC for Self-Assessment.

A Unique Taxpayer Reference (UTR) number is assigned by HMRC when you register for Self-Assessment or set up a limited company.

Obtaining a UTR number is crucial for self-assessment tax returns, registering for tax refunds under the Construction Industry Scheme (CIS), and collaborating with accountants. Lacking a valid UTR number can lead to incorrect submission and penalties. If you are self-employed and have failed to inform HMRC, thereby not receiving a UTR number, can result in fines and criminal charges.

A sole trader is personally liable for business debts, whereas a limited company is a separate legal entity with its own financial obligations.

  You must register for VAT if your taxable turnover exceeds £90,000 (as of 2024) in a 12-month period.

Corporation tax payments are required to be made nine months and one day following the conclusion of the accounting period. Additionally, the corporation tax return must be submitted within 12 months after the end of the company's accounting period.

PAYE (Pay As You Earn) is a payroll system for deducting tax and National Insurance from employees. You need it if you have employees.

Yes, but only allowable expenses, such as office costs, travel, and staff wages. Personal expenses cannot be claimed.

The Self-Assessment tax return deadline is 31 January for online filing, and Corporation Tax returns are due 12 months after the financial year ends.

Yes, we can handle the transition process, including obtaining your records from your previous accountant.

By claiming all allowable expenses, using tax relief schemes, and ensuring accurate financial reporting.

A "registered office address" refers to the official legal address of a company, which is publicly available and utilized for significant documents such as tax notifications and legal summons. In contrast, a "correspondence address" is designated for receiving general business mail and can be any address selected by the company, including a virtual office. 

You can call, email, or visit our website to book a consultation.

Yes, we advise on the best tax structure for your business to maximize tax efficiency and minimize liabilities.

Your tax deadlines depend on your business structure and VAT status. We can provide you with a personalised tax calendar.

Dividends are payments (usually cash) made by a company to their shareholders to share the profit they have made over a certain period. Tax paid for dividends is called Dividend Tax. 

Yes, dividends must be declared on your Self-Assessment tax return.

Dividends represent a portion of a company's earnings allocated to its shareholders, whereas a salary is compensation provided to directors for their work.

Yes, but there are tax implications. We can guide you on the best approach.

You can update your details through your HMRC online account or ask us to assist.

You must keep invoices, receipts, bank statements, payroll records, and VAT records for at least six years.

VAT returns are submitted via HMRC’s Making Tax Digital (MTD) platform. We can file them on your behalf.

HMRC may issue penalties and interest charges for late filings. Contact us immediately for guidance.

Yes, you can switch between VAT schemes (Standard, Flat Rate, Cash Accounting) if eligible.

Corporation Tax is paid via HMRC’s online banking system, telephone or direct debit. You cannot pay Corporation Tax by post.

Director's loans refer to funds that can be borrowed from your company by yourself, another director, or any close family member. A director's loan account serves as a ledger documenting the financial interactions between a director and the company. This account may reflect either a debit or credit balance, depending on the amount withdrawn from the company and any repayments made. It is essential to comprehend the regulations governing such loans if you intend to withdraw money from your company in this manner.

There are tax implications if not repaid. Before giving or receiving a loan from the business, you should seek a suitable advice.

Yes, if you work from home, you can claim a portion of rent, utilities, and internet costs.

Yes, Net Accounting offers payroll services to help businesses manage their payroll processes efficiently and effectively.

You must register as an employer with HMRC and operate PAYE.

The rates vary by age and increase annually. As of April 1, 2024, the National Minimum Wage in the UK:

£11.44 per hour for workers aged 21 and over

£8.60 per hour for workers aged 18 to 20

£6.40 per hour for workers under 18

£6.40 per hour for apprentices

Capital Gains Tax (CGT) is imposed when an individual sells, donates, exchanges, or otherwise disposes of an asset and realizes a profit or 'gain'. The tax is levied not on the total amount received for the asset, but rather on the profit generated from the transaction.

Yes, you can amend a return within 12 months after the filing deadline.

You can claim a refund through HMRC if you’ve overpaid.

If you are an employer in the UK, you need to register for auto-enrolment pensions if you have eligible employees, meaning you must automatically enrol them into a workplace pension scheme if they meet the age and earnings criteria; this is a legal requirement under UK law. 

Your tax code is on your payslip, P60, or HMRC online account.

HMRC consistently evaluates the feasibility of establishing a payment plan that allows you to commit to monthly payments over a period of 12 months or more to address your tax obligations.

If you have tax liabilities arising from self-assessment, you may arrange a payment plan online provided that the outstanding amount is below £30,000, tax returns are current, you do not have any other outstanding tax debts and it is within 60 days of the payment due date for the tax.

A system known as Business Rates Relief allows some firms to receive a discount or exemption from their business rates bill. This is usually dependent on the size and value of the business's property and enables smaller enterprises to pay lower local taxes.

Yes, limited companies must file a confirmation statement yearly with Companies House.

Yes, if used for business purposes, but keep mileage records.

You can set up payments via your HMRC online account.

A dormant company is a company that is not trading and has no other income. You can tell HMRC that your company is dormant, and you may not need to pay Corporation Tax. You should also inform relevant organizations about your company's status. This might be a good choice if you believe the business might be useful again in the future. However, dormant companies must still file accounts and a confirmation statement.

It is essential to maintain records for a duration of six years following the conclusion of the last financial year of the company to which they pertain. This period may be extended if the records document a transaction that spans multiple accounting periods of the company.

HMRC may update your tax code if you start a new job, receive taxable state benefits, start income from additional jobs or pensions, change your weekly State Pension amount, claim Marriage Allowance, or are put on an emergency tax code.

Simple Assessment is a method by HMRC to collect underpayments of tax from taxpayers with straightforward tax affairs. It is not required to complete a Self-Assessment tax return and is used when there is an underpayment of Income Tax for a tax year that cannot be collected automatically via Pay As You Earn (PAYE). This can result from pensioners receiving income from the State Pension, occupational pensions, employment pensions, and most taxable state benefits, or those with up to £10,000 of untaxed income. HMRC uses existing information, information supplied from banks and building societies, and information about the State Pension provided automatically by DWP. If owed tax, the taxpayer must pay it by the deadline stated on the letter. Simple Assessment offers advantages such as not needing to complete a Self-Assessment tax return.

You can schedule a consultation by calling our office, emailing us, or booking an appointment through our website.

You only pay income tax and National Insurance contributions on any taxable profits you make.