Do you have questions about your accounts, or just want to find out about how we work? As all circumstances are individual, we can not be held liable for action taken on the answers below without consutling with us first.
We answer some popular questions across these areas:
How exciting, you’re at the start of your journey with us!
Over the next couple of weeks you’re going to receive a few emails from us. They contain useful information such as tax tips and allowances, who in our team can help you best and how to keep up to date with our content.
Yes, leave that to us! If we don’t already have it, we’ll be asking for their email address.
They’ll then receive automated requests for the information we need to complete your sign up. They will need confirmation from you that you’re happy for them to send us your information.
The majority of the time, this is quick and isn’t really an issue for you.
Yes, as soon as authorisations are in place. This involves us requesting authorisation for each tax we’re going to act for you on. HMRC will post you several codes which you need to give to us. There could be 4-5 codes. You’ll be sent reminders from our software to watch out for them.
For Making Tax Digital for VAT, you will need your government gateway & password as the authorisation is done online.
As discussed in the last answer, yes it is. HMRC require an authorisation for each tax, which means a bit of post to pass over to us.
Make sure you send it as soon as you receive it as after 30 days we have to reapply for it.
When you agree your proposal it triggers the task list in our workflows.
We would normally expect you to have access within 7 days. However, if you need it much sooner, then we can move things around, just let us know!
You’ll receive emails for both QuickBooks and AutoEntry, so watch out for those in your inbox and junk email.
Anyone who buys QuickBooks through us receives 2 x hours free training from one of our team once you’ve watched our free training videos here.
We’ll make sure the software is simplifying your business processes along with giving you better information about your financial performance.
In short, you can speak with any of us as we can all help with most of your day to day queries or questions.
However, our business is split in the following main departments –
Accounts / tax – Colin & Callum
VAT & Bookkeeping – Claire, Callum, Jack & Evie
Payroll – Jack & James
QuickBooks support – Callum, Claire, Jack & Evie
Business growth support – Michael
New customers and general support – Helen & James
Get to know the team a little more.
You can book an online meeting / call directly here. This will go into both our diaries then.
Or if you want to go old school, give us a call or drop us an email 😉
Yes, we have a separate company which does this – Woodville Financial Planning. We’ll cover this in your kick starter meeting. If you want more information, drop us an email!
We’re around Monday to Friday 0830 to 1700. We close between Christmas and New Year and all English bank holidays. You can give us a call in these times on- 01257 368963.
Or drop any of us an email. If you don’t have an email, contact sayhello@woodvilleaccountancy.co.uk
You can also find us on Facebook Messenger
If you get in touch, most of us should be able to help or pass you to the right person. You can have a look on our meet the team page before calling if you like though.
In short –
Accounts / tax – Colin & Callum
VAT & Bookkeeping – Claire, Callum & Evie
Payroll – Jack & James
QuickBooks support – Callum, Claire & Jack
Business growth support – Michael
New customers and general support – Helen & James
All of our costs are rolled into your monthly direct debit. There are no surprise invoices from us.
Anything which is outside the scope of our engagement is chargeable, however, a new quote & engagement letter will be sent before we progress on it.
Accounts and Tax
There are a lot of different taxes to pay, here we’re covering the main ones we look after. If you have any questions, let us know via email or call to ask us.
Self-assessment income tax & national insurance – follow the link to HMRC here.
Corporation tax – follow the link to HMRC here.
PAYE & CIS – follow the link to HMRC here.
VAT – follow the link to HMRC here.
As in the previous answer, there are a lot of different taxes to pay, here we’re covering the main ones we look after. If you have any questions, let us know via email or call to ask us.
Self-assessment income tax & national insurance – balancing payment of tax is due by 31st Jan following the 5th April. Payments on account are due on 31st January & 31st July.
Corporation tax – This is due 9 months and 1 day after your year end. Surprisingly, the CT600 return, which shows the corporation tax amount due, is only due 3 months later.
PAYE & CIS – due by the 22nd of the month proceeding the 5th of the month just finished.
VAT – due about 5 weeks after the month end, the 7th of the 2nd month following the quarter end. If you pay via DD you get an extra 3 working days credit – worth considering if you have the cashflow.
The key deadlines we have are around the filings. However, these are the deadline, not a target, so here are our internal targets followed by latest deadlines.
Self-assessment – we have an internal target of 30th November following the tax year to complete all of our tax returns. The filing deadline is 31st Jan. We have an earlier target so we can give you your tax bill as early as possible. Plus we can have a few months to do other important work and have a relaxing Christmas 🙂
Annual Accounts & corporation tax returns – We have an internal target, which we’re slowly working towards, of sending draft accounts within 3 months of year-end. Currently, we’re about 6-7 months. The filing deadline is 9 months after the company year-end. The corporation tax return is due 12 months after the year-end, but it’s often produced with the company accounts. The only exception will be when the company is claiming R&D tax credits.
PAYE & CIS – these deadlines are hit in line with your internal payroll deadlines.
VAT – for VAT information sent to us by the 10th of the month, we will have a draft VAT return sent to you by the end of the month. The filing deadline is 7 days after that.
Ask via our online chat or facebook messenger if you have any other questions
For your company accounts, we have an internal target, which we’re slowly working towards, of sending draft accounts within 3 months of year-end to you. Currently, we’re about 6-7 months. The filing deadline is 9 months after the company year-end. The corporation tax return is due 12 months after the year-end, but it’s often produced with the company accounts. The only exception will be when the company is claiming R&D tax credits.
A confirmation statement is an annual filing made to Companies House that confirms that the details they have about the company are still true. Things like the registered office, directors, PSCs and shareholders. If any changes need to be made, most are done prior to the return being completed. Only share transfers are shown on the confirmation statement.
This depends on what your business structure is.
If you’re self-employed, it’s dealt with on your personal tax return. With the tax paid coming as a credit off your tax bill.
If you operate a limited company, then it’s offset against PAYE / CIS deducted from your employees / subcontractors. With the balance often being deducted from corporation tax at the end of the year.
If you’re buying as stock in trade of a car manufacturer / dealer, using as a taxi or driving instruction car or being used exclusively within your business (must be kept overnight at your business), then you can reclaim the input tax.
Most customers we have don’t fall into these categories, so if you buy a car the input tax is treated as an expenses within the profit and loss. So if you buy a £60,000 Tesla (including VAT), then the cost of the car for tax purposes is £60,000. Not the £50,000 it would be if you’d have bought a new machine within your business.
If you lease a car, then you can recover 50% of the VAT. The other 50% allows for private use of the vehicle.
This can be a complex area, please get in touch if you’re looking to least or buy a car within your business.
Currently, the mandatory VAT threshold is £85,000 of taxable income. Certain industries are exempt, such as a lot income earned within financial services.
The deregistration threshold is £83,000.
If you operate a company and want to make pension contributions to directors, the company can do this and save tax at their rate of tax (Currently 19%, but changing to 25% from 2023)
The same tax exemptions don’t apply if you pay as a sole trader or work through a partnership. Instead, the government tops up your pension at the basic rate of tax, currently 20%. So an £80 contribution becomes £100 with tax reclaimed. If you’re a higher rate tax payer, you can reclaim higher rate tax relief also, reducing your tax liability.
Answer coming soon. Ask via our online chat or facebook messenger if you wish.
This is an easy thing to be confused with, especially as the media often like to quote how company X has only paid Y in tax from £1bn of revenue.
Companies and the self-employed pay tax on profit. Which is, in it’s simplest terms, income less tax allowable expenses.
Yes, since 2015, shareholders have paid tax on dividends again. There’s a £2,000 tax free allowance for dividends. Above that, you pay tax at your marginal rate of tax –
Basic rate – 8.75%
Higher rate – 33.75%
Additional rate – 39.35%
Expenses
If you’re outside of your usual work pattern, and traveling for work, then you can claim for reasonable costs of food and drink. E.G. we usually work in the office, so can’t claim food back on lunch times. However, when we go to a conference, or visit a customer across the country, those food expenses become travel and you can reclaim them.
Again, there’s a lot around this, so if you’re unsure, get in touch!
For unincorporated business owners (sole traders & partnerships), there are two main options – claim HMRC approved mileage rates for business miles or a percentage of actual motor expenses based on business use.
For limited companies, unless an electric vehicle is being bought / leased, in most cases we recommend you do this personally and then claim the approved mileage rates allowed by HMRC.
Commercial vehicles are treated differently again, so get in touch if you have any questions on this.
If the car is electric, then you probably should. If it isn’t, you probably shouldn’t.
The answer for you could be nuanced, so please ask if you’re thinking of doing this!
Bookkeeping
Yes!
A slightly longer answer – definitely, yes!
The main reasons are –
Get in touch and we can help you decide the best solution for you.
Yes, HMRC expect you to able to back up all returns and accounts send to them. They can be kept as hard copie’s or electronic.
6 years from the filing deadline. If you keep them electronically, this is much easier.
Yes, we use Dext to capture receipts plus QuickBooks for your bookkeeping.
Get in touch to get moving!
Accountants
We do all the basics that other accountants do – do your bookkeeping, run your payroll, file accounts and submit tax returns to HMRC.
We keep on top of all the latest legislation and tax changes to make sure everything is kept tidy and filed correctly.
At Woodville, we like to focus on your business and personal growth. We believe if you grow then we grow. Plus, we really enjoy it and think we’re good at it.
No. You can file everything yourself if you wanted and chose to do so.
Our challenge to that would be – are you sure it’s going to be right? And, what else could you be doing with that time instead? If you can free up 1-5 hours/week, you can spend that time doing more billable work, winning some more work or just relaxing 🙂
A good accountant will save you more than you pay. They’ll not only make sure you’re compliant with HMRC and current legislation, but they’ll also save tax and time. Giving you more in your pocket and more time to do it with.
Yes! We write to your old accountant, let them know you’ve asked us to take over and request relevant information from them to move things forward. They would normally want a chat with you to confirm this before sending it – but that’s your sole involvement.
Joining Woodville
Firstly, we want a chat. We want to work out what your problems are and make sure we can solve them. Once we know we can, we’ll run through the best services you need. Once you’ve signed up we get cracking!
Our fees are monthly, but sometimes there will be a catch up fee. It depends when you join and what’s needed. If a full set of accounts is needed for the previous year, then this would be billed separately. But things like QuickBooks, would just be paid monthly within your monthly subscription.
Other
When you start employing someone, as a minimum, you need to do the following –
If you use us to run your payroll, we take care of the admin and just let you know what you need to pay.
As long as your company has distributable profits after tax, then you can pay dividends on a monthly basis. Most of our customers do. Some prefer quarterly or annual though, it’s whatever works for you and your business.
It depends whether you’re an employee or self-employed.
If you’re employed, it’s dealt with through payroll.
If you’re self-employed, you pay it via Class 2 & Class 4 NI with your self-assessment tax bill.
If you want to set up a new company, you need to do this via Companies House.
If you want to set up as self-employed, you need to complete a CWF1 form and submit to HMRC.
In either case, it’s best to seek the advice of a professional to see what route is best for you. Give us a call and we’ll be ready to help 🙂
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