When you first start your business you may be tempted to use your personal account for business transactions rather than a separate business bank account (especially given you might want to save on charges for running separate accounts). However, you should also be aware that if you are running your business as a limited company, then the company should have its own separate business bank account and you should try very hard to keep business and personal expenditure separate.
A Payment on account is the amount of Income Tax and class 4 National Insurance that some business owners have to pay to HMRC for a future tax year.....and it can be a little confusing. Payment on Account is one of the most commonly misunderstood elements of the Self Assessment process. Although it was devised as a way of helping self-employed people ( that's sole traders and private limited company directors) spread out their tax bill, it often results in increased financia
Mistakes are easy to make, especially on your tax returns so can you amend them? Making an error on a personal tax return is not uncommon and HMRC make provision for taxpayers to amend their tax return providing this is done within one year of the original filing deadline. For example for a 15-16 tax return which had to be filed by the 31 January 2017 you have until 31 January 2018 to amend your tax return, as this is one year after the original online tax return filing dead
Can you tell your annual accounts from your annual confirmation statement? They sound similar but in fact they’re quite different. What’s required, what are the deadlines and do they apply to sole traders as well? The annual accounts Both sole traders and limited companies prepare annual accounts and file their accounts with HMRC as part of their tax returns, the sole trader for self assessment and the limited company for corporation tax. One major difference is that limited
Making the decision as to which structure your business operates as can be crucial, whether that be in terms of tax savings, perception to the outside world, keeping things simple or future plans you may have. Sole Trader Tax As a sole trader an individual must pay tax on all profits over and above their personal allowance, for most tax payers the personal allowance is £11,500 for the 2017/18 tax year. Once the personal allowance has been breached tax is paid at the rate of 2