Accounts Services
Dedicated Year-End Accounts Management
When you appoint us, you can rest easy knowing that a dedicated accounts clerk will manage your year-end accounts. Our primary goal is to minimise your tax bill while alleviating any concerns you might have about your year-end financials. With us handling your accounts, you can focus on running your business without worry.
Beyond Compliance: Leveraging Accounts for Business Insights
A well-prepared set of accounts is more than just a tool for calculating earnings and tax obligations; it is a valuable resource for business owners. Once your accounts are prepared, we analyse them and compare results from year to year, helping you gain deeper insights into your business. This service can extend to the preparation of periodic management accounts, which many clients find extremely beneficial.
Monthly and Quarterly Reports
Our management accounts can be provided monthly or quarterly, allowing you to maintain a closer watch on your business’s performance. This proactive approach prevents the ‘running blind’ scenario, where you only discover how well your business has performed after the year has ended.
Efficient Business Structuring
Your business can be set up in various formats, and we offer expert advice from the outset to ensure it is structured in the most efficient way possible. For clients who are already trading, our initial approach is to review the current set-up and restructure it to better suit their needs. In cases involving associated entities or subsidiary companies, this can lead to further group restructuring to maximise tax efficiency.
For more information, please visit our Group Restructure information page.
Business Structure Options
We will guide you through the most common options for structuring your business. However, in some cases, more complex structures may be appropriate. These can include Partnerships, Limited Liability Partnerships (LLP), Community Interest Companies (CIC), and Social Enterprises.
Expert Assessment and Consultation
Our Senior Accountants and Client Managers have extensive experience in assessing both the commercial and tax positions of clients. This typically follows a free consultation meeting, where our technical team will advise on the best structure to meet your requirements. We’re always available to discuss this subject further, so please feel free to contact us.
Sole Trader
Simple Yet Effective Business Structure
Operating as a sole trader is often the simplest business setup, yet it can be just as effective as more complex structures when managed correctly and suited to the right individual.
Flexibility in Employment and VAT Registration
As a sole trader, you can employ workers under the Pay As You Earn (PAYE) scheme and register for VAT if necessary.
Comprehensive Accounts Preparation
We can prepare a full set of accounts for sole traders, even though the reporting requirements are fewer compared to other business structures. The results in your accounts are adjusted for tax purposes and included in your Self-Assessment Tax Return, which is submitted to HMRC annually. Typically, the accounting period or year-end is 5th April to align with the fiscal year, although this can vary depending on the business.
Personal and Business Tax Liability
As a sole trader, you and your business are legally considered one entity by HMRC. Any tax due from your business becomes your personal income tax liability, which also includes National Insurance contributions at the current rates, and a small Class 2 National Insurance contribution specific to self-employed individuals.
Considerations of Sole Trader Status
While operating as a sole trader has its benefits, it also means you do not have limited liability protection. Unlike directors of limited companies, you are personally responsible for any business debts.
Partnership & Charities
Limited Partnerships & Limited Liability Partnerships (LLP)
A limited company consists of members who own shares and directors who manage the company, who may also own shares. Limited companies pay corporation tax.
Social Enterprises, Charities, and Community Interest Companies
Social enterprises are set up to achieve social or community objectives and can take various forms, including charities, charitable incorporated organisations, co-operatives, industrial and provident societies, or community interest companies. The best structure depends on several factors, such as whether all or part of the profits are dedicated to the social purpose.
For more information on setting up as a sole trader or exploring other business structures, please contact us.
Limited Companies
A Common Choice for Business Owners
A limited company is the most common setup for our clients who own and control their own businesses. Unlike a sole trader, a limited company is a separate legal entity and offers the benefit of limited liability. This means that if things don’t go as planned, the directors and owners (shareholders) are protected from personal liability. This limited liability can ease the fears many people have about starting their own business, especially those taking the leap for the first time.
Benefits of Limited Liability
The limited liability aspect of a limited company protects individuals from being personally responsible for the company’s debts, offering peace of mind and security.
Reporting Requirements
Limited companies do have greater reporting requirements, but we handle these complexities for you. Your company will need to prepare accounts to be submitted to Companies House within nine months of its year-end, which is typically the last day of any month throughout the year.
For HMRC, any tax owed by the company is due nine months and one day after the year-end, while the annual accounts and tax return must be submitted within twelve months of the year-end. The company will pay Corporation Tax, which is different from the tax obligations of a sole trader.
Roles and Remuneration
As a business owner, you will often be named as the Director of the company and may be its sole shareholder, owning 100% of the shares. In more complex cases or group structures, this can vary based on the technical tax advice we provide.
In most instances, you will be treated as an employee of the limited company and receive a salary as remuneration. If you own shares in the company and it makes a profit, dividends can be distributed to shareholders. These forms of taxable income must be reported on your personal Self-Assessment Tax Return.
Copyright 2024. Castle Moss Limited Company Registration number: 13988853
We need your consent to load the translations
We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.