F.A.Q. I want to set up my own business as a self-employed. What should I do?
If you want to start working as self-employed, you must register with HM Revenue & Customs, but first make sure you have a National Insurance Number. After the registration, you will receive your Unique Taxpayer Reference (UTR) and HMRC will set up the right tax and National Insurance contributions records. You should keep your UTR safe because you will need it when completing your Self Assessment tax return.
When do I need to register for Self Employment?
You must notify HMRC within 3 months of becoming Self Employed that you are now working for yourself. If you fail to do this you could be liable to a £100 Penalty
Should I register for VAT and When do I need to?
You may need to register for VAT if you are doing business in the UK as an individual, a partnership, a company, an association, a charity, a local authority or any other organisation or group of people acting together under a specific name.
Registration for VAT is compulsory if your annual turnover exceeds £85,000 or you expect the turnover to be higher than that amount in the next 30 days. However, it may happen that your turnover has exceeded the registration threshold temporarily. In that case, you may apply for exception from registration. This applies for entrepreneurs supplying goods or services within the UK. If you take over a VAT registered business, your VAT taxable turnover over the last 12 months must be added to the turnover of the business you are taking over when checking if the registration threshold has been exceeded. And if you have received goods from other countries in the EU, registration for VAT is compulsory if the total value of the goods acquired has gone over £85,000
Note that you cannot register for VAT if you sell only goods or services that are exempt from VAT or you are not in business according to the HMRC's definition.
What are the current tax rates?
Current tax rates are always available on
HM Revenue & Customs website. There you can find information on Income tax, National Insurance, Corporation Tax, Capital Gains Tax, Inheritance Tax. I Have a Property Which I rent out do I need to declare this?
If your rental income is more than £2,500 per annum and you do not already complete a tax return, then you need to register for self-assessment and your income will need to be reported on a tax return.
When is my Tax Return Due?
If you have been issued a Tax Return by HMRC or have Registered with HMRC to complete a Tax Return the Tax Return is due for filing by 31st January if filing electronically) or 31st October (For paper returns) following the end of the Tax Year. If you have Tax and/or National Insurance to pay it is due by 31st January following the end of the tax year and if you have a liability of over £1,000 you may have to make a payment on account in July. Tax can also be paid through your tax code if you are in receipt of other taxable income.
I am worried about getting a Tax Investigation
Are you aware that HM Revenue and Customs no longer need a reason for opening an enquiry into your business or personal affairs? This means that potentially everyone is at risk of a tax investigation
S.M Vint & Co can offer you Fee Protection Insurance which covers the cost of work your Accountant has to do towards an investigation. These investigations can run on for many months at times which can accumulate to Large Accountancy Fees. With this insurance, we feel you will have peace of mind during the Investigation Process. For more Information Please Contact our office.
Workplace Pensions are changing, What is Auto Enrolment?
Every Employer with at least one member of staff now has new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it. You need to take steps to make sure your eligible staff are enrolled into a pension scheme. Even if you already pay contributions into a pension scheme for your staff, you still need to check if it is suitable for automatic enrolment. - See more at:
Auto Enrolment Service What do I do for Auto Enrolment?
S.M Vint can help you with your Auto enrolment Service, we have a dedicated Payroll service that can deal with your Auto Enrolment needs. If you have any particular questions about this feel free to contact the office and speak with Gail or Thomas who will be happy to help you.
What is RTI?
A new way of reporting PAYE called Real Time Information (RTI) was introduced by HMRC in 2013. According to HMRC (
GOV.UK), the changes were introduced because: When PAYE was introduced almost 70 years ago, most people held just one job for life and employers sent us pay and tax information annually.
"Many people [now] change jobs more frequently, or have multiple employments or pensions, making it more difficult for us to keep our data up-to-date. We also need up-to-date information about employment and pension income so the Department for Work and Pensions can adjust claimants Universal Credits.
Following the changes, by law, employers must now submit information about all PAYE payments to HMRC online every time a payment is made as part of their payroll, whether weekly or monthly, rather than at the end of the year, as was previously the case.
If you have any other questions please feel free to
contact us. Do you provide help with Tax Credits?
Our staff have the knowledge and expertise to help you with your Tax Credits Claims and also keeping you right with peace of mind when you should be updating your Tax Credits.
Married Couples Allowance Transfer
Did you know that if either your Husband/Wife does not earn their Personal Allowance (currently £12,000) they can transfer part of it to you. It could save you £238 this year in Tax
Can you provide me with Software to submit VAT returns to comply with Making Tax Digital?
Yes, we have teamed up with Iris Kashflow to offer a great piece of software to help comply with the new regulations of Making Tax Digital, not only a tool to just submit VAT returns but can be used as a full bookkeeping software package. if you are interested please contact the office and speak with one of our team