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Frequently Asked Questions

about our accounting services

If you have questions about our services or accountancy in general, you may find the answers you’re looking for here. If not, we’re more than happy to speak with you on a one-to-one basis over the phone or via email.

Remember that the below answers are provided for guidance only and may not cover your own circumstances. It is important that you seek appropriate professional advice that takes your own circumstances into account when needed.

Q. Should I form a Limited Company?

A. We are often asked, ‘Should I form a Limited Company?’. The reality is that there is no easy answer, as each situation has to be judged individually. As well as the obvious issues of tax and National Insurance contributions (NICs), there are many other potentially relevant factors.

Click here to read more about the advantages and disadvantages of a limited company. Find out about the most common types of businesses: Sole Traders, Limited Companies and Partnerships.

If you would like us to undertake the administration necessary to form a company for you, please complete this form and we’ll be in touch shortly.

Q. If my rental expenses exceed my rents do I have to declare anything to HMRC?

A. Yes. It is a common misconception that if the expenses cover the rents you receive, you do not have to tell HMRC about them. This is not the case, and failure to do so can result in penalties being charged.

Q. What happens if I fail to declare all my income?

A. It is likely that a fine will be charged in addition to you having to pay any tax due when HMRC discover you have not declared all your income.

Q. When do I have to charge VAT?

A. You do not need to charge VAT on any of your goods or services you supply until you have reached the VAT threshold. If your turnover exceeds the current turnover limit then you must register for VAT, but you can voluntarily register even if your annual turnover is smaller.

Find out more about our VAT services here.

Find the current VAT Threshold here – Tax Tables -> Value Added Tax

Q. What details are required on a limited company’s letterhead?

A. The full company name, registered number, registered office address and place of registration (e.g. registered in England and Wales) must be shown on all business letters and order forms.

Q. How long do I need to keep my records for?

A. Individuals
You have to keep your records for 22 months from the end of the tax year to which they relate. For example, if you file your 2017–18 tax return by the filing date, you should normally keep your records until 31 January 2020

Self-employed or in partnership
You have to keep your records for at least five years from 31 January following the tax year that the tax return relates to. For example, if you file your 2017/18 tax return by 31 January 2019, you should normally keep your records until 31 January 2024

The records for an accounting period will normally have to be kept for six years from the end of that period. For example, if the accounting period ends on 31 December 2018, the records have to be kept until 31 December 2024.

Please note that if you send in your tax return late, or it is subject to a compliance check, then the time limit for keeping records may be extended. See HMRC’s guide to keeping Tax Return records for further details.

Q. How do I pay the taxman?

A. One of our most frequently asked questions is ‘How do I pay my tax bill?’. The Institute of Chartered Accountants have come up with a guide, PAYING TAX TO HMRC, which covers everything from sending a cheque to paying over the telephone and even setting up direct debits.  It also gives details of the steps you can take if you are in financial difficulty and unable to meet the payment deadlines.

Q. How do I pay my PAYE or Class 1A National Insurance?

A. Click here to find out how to pay your PAYE or Class 1A National Insurance.

Q. What are the advantages of Cloud Accounting? 

A. No more updating programs on your computer – this is all done for you. Your sales invoices are all saved in the cloud and you can even upload your purchase invoices. All your documents are in one place, and you can access them from anywhere. You are working on real-time data, not historical.

Q. How long do I have to register with HMRC once I’ve started trading?

A. You must notify them within 3 months to avoid a penalty. If you’re approaching this deadline then contact us and we can deal with informing HMRC for you.

Q. If I want Warr & Co to act for me, what details do you need from me?

A. We need the following details from you:

  • Full name and proof of ID (Passport or Driving Licence)
  • Date of birth
  • Current address and proof of your address (including your previous address if you have lived at your current address for less than 3 years)
  • Home telephone and mobile number
  • National Insurance number
  • UTR number (if applicable)
  • Company name and number (if applicable)
  • VAT registration number (if applicable)
  • Copy of last accounts/tax return (if applicable)

Q. Do I have to keep books and records?

A. Yes, there is a fine of up to £1,000 for failure to keep good accounting records. Therefore it is important to stay up-to-date with your bookkeeping.

Q. How much tax will I pay?

A. The amount of tax you pay will depend on your individual circumstances, the types of income or gains you receive, and any other tax reliefs that you can claim. Please contact us if you need help in working out your tax position.

Q. What’s involved in changing accountants?

A. The process is straightforward and we will deal most of the administrative tasks for you. We will write to your old accountants to arrange for transfer of all required information and documentation and we will send you an engagement letter confirming the areas and terms under which we are to act for you. You can find more information on our Becoming A Client page.

Q. I am taking someone on – what do I have to do?

A. Click Here to view the HMRC guide for taking on a employee or contact us if you would like us to deal with your payroll.

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