Understanding Tax

Accountants are exceptionally intelligent people who have an experienced knowledge of the accounting world. Accounting in Bedford will sort out your taxes whether they are personal or business taxes. Our well-trained professionals will help assist you with your taxes, bookkeeping and annual accounts.    

 

What is Tax?

Tax is a compulsory payment to the government which is taken from a worker’s income or a business’ profits. Often tax is taken from the purchasing of goods or services in a VAT (Value Added Tax). We all pay VAT as it’s added onto most everyday products that we buy.    

 

Why Do We Get Taxed?

Taxes are essentially a source of income for the government. By paying tax, we are giving money to government funded organisations and services. These organisations and services include the NHS, the welfare and the education system. The tax collected is also used to help projects for the roads and railways.

 

A couple taxes that are quite common are PAYE and corporation tax.

 

PAYE Tax

PAYE tax stands for pay as you earn. This tax works by employees and pensioners having tax deducted under this tax using unique PAYE tax codes. HM Revenue and Customs and your employer will be involved with this. The percentage of tax will be decided based on the amount of money you make. PAYE in Bedford will help you understand your tax code and will look after your taxes for you.

 

Corporation Tax

You must pay a corporation tax if you’re in business. If you’re a limited company or do business as a foreign company with a UK branch or as an unincorporated association, you’ll be required to pay corporation tax. This tax is a little different to other taxes. It isn’t deducted straight away, you have to go through a process. You must register for corporation tax, however, if you’re an unincorporated association, you’ll need to write to HM Revenue and Customs. From here you must keep accounting records and file company tax returns by the deadline given. As this isn’t as straightforward as other taxes, it’s often easier to use an accountant. Corporation tax in Bedford will easily be able to organise your taxes and keep them in check for you. Making sure you never miss a tax payment.

 

The Importance of Doing Annual Accounts

Annual accounts hold information about your balance sheet, profit and loss accounts, other accounts involved and the director’s report. These are produced at the end of each financial year and must be acknowledged by shareholders, HM Revenue and Customs and those in managerial roles. If you aren’t sure where to start with your financial reports, then there are annual accounts in Bedford who will be able to help you. Accountants have a skilled and professional mind set meaning that annual accounts are done reliably and efficiently.  

 

Provide Financial Information

The final reports will provide you with a significant amount of financial data that is imperative to the business. This data will allow you to understand the progressions of the business and highlight where the company is making money, ensuring that they are making more than they spend. It’s essential to know that the company is making more money than it’s spending as this will stop it accidentally slipping into deficit.   

 

Show Achievements

An annual account will enable you to see how well the business is doing. The report will show figures indicating the success or failure of the business during that year. It will show whether or not you beat last year’s statistics. From knowing this, it will allow you to understand the areas in which you need to improve and will give you the opportunity to try new things for the business. Final accounts in Bedford will show you where you were successful during the previous financial year, giving you the opportunity to improve that.

 

Strategic Plan

Strategic plans are incredibly useful for businesses. A strategy can be written up that will enable the company to grow and increase their sales. The figures presented from the annual accounts will inspire the production of a strategic plan for the next year. This plan will be based on the figures the business produced last year, and its purpose is to help boost the figures for the next year. As a result, it will spark an interest in finding promotional ways to improve the business’s statistics.

5 Ways an Accountant can Help your Business Grow

Running your own business is very exciting however it can also be quite stressful and have less exciting sides to it. One of these less exciting sides is the accounting. This isn’t the most enjoyable part of running your own business, but it is an essential and a necessary factor. Our strong, experienced team of accountants will sort all of your taxes, bookkeeping, company formation and annual accounts in Bedford.         

 

Less Stress

Having an accountant will mean that you will be able to relax a bit more knowing that your accounts are being professionally taken care of! Your tax worries will be minimised. Learning and trying to understand tax and the way it works is very challenging and can result in you feeling very stressed, especially when you’re required to do it for your business. Accountants are professionally trained in these areas and will be able to do your taxes easily.   

 

Help Business Grow

As your business grows, you need to ensure you have all the facts and figures about it to make sure that the expansion runs smoothly and that you have the costs to do this. An accountant will provide you with specialist advice and a great deal of in-depth knowledge to help you through your expansion. They will be able to tell you if your business is ready to grow and forecast further profits and loss for it.

  

Save You a Great Deal of Time

Having an accountant will mean you won’t be required to do the long strenuous task of the business accounts. This further allows you to have more time available to spend on business planning, marketing and development.  

 

Financial Support

When first starting up a small business your finances are a bit all over the place and will be in need of a bit of stability. A small business accountant in Bedford will stabilise your finances and keep you up-to-date with your profits. To further support you, due to their skill and knowledge they will be able to help you get a loan for your business if needed.   

 

Plan For the Future

Using cash flow forecasts and profit and loss accounts, it will enable you to see what the future of your business will look like. Cash flow forecasts can be quite confusing if you’re not used to them, but an accountant will be able to do a forecast instantly and show you your expenses with a great deal of ease.

 

 

Benefits of Bookkeeping

What is bookkeeping? Bookkeeping is the process of maintaining and keeping up with the financial transactions for a business.

If you are new to business and in need of an accountant, accountants in Bedford will be able to help you and organise your financial transactions without hassle or confusion.

 

Improves decision making

Bookkeeping will help you see the money in your accounts in an organised way. It will highlight transactions such as paying suppliers, receipts from customers and the billing for goods/services. Due to seeing where your money is going you can make relevant and appropriate decisions for your business that will improve it without tarnishing your budget. This will make your work life easier as you will be able to spend more time focusing on the key aspects of your business and have an accountant to do the financial side.

 

More Free Time 

We have professionally trained experts who specialise in bookkeeping in Bedford. They will keep on top of your bookkeeping and provide an excellent service. By having an accountant do your bookkeeping for you, it enables you to have a bit more free time. Doing bookkeeping can take a significant amount of time especially if you are not trained in it, or it’s your first one. Therefore by having an accountant do it, you will find yourself less stressed and with a little bit more time.       

 

Accurate data

An organised bookkeeping structure will allow you to identify all of your data. Using Bedford accountants, this data will be professionally represented and will show your exact figures for your business based on the data you provide. Your business will be more reliable and functional as a result of bookkeeping.

 

Problem Solving will be Better

Doing bookkeeping on a regular basis will enable you to see any issues should they arise in your business. Spotting problems or unusual occurrences early on will mean that you can solve them before they increase, spread and cause damage to your business and its reputation. These damages may not be easily fixed, therefore finding issues early will protect your company.   

Using Your Car for Work Purposes

Can I claim tax back for using my car?

One of the most common expenses that people claim is for business miles this is normally the use of their car for work purposes. You are entitled to tax-free reimbursement for costs of travelling if you are required to travel to fulfil your job.

 

What counts as business travel?

 

Business travel includes journeys you have to make to carry out your work. This includes travel from your place of work to visit your customers using your car, motorbike, bicycle or van. Business travel also counts if you are travelling from your home to visit a client, but only for the extra miles from the distance of your home to your place of work. If you work from two offices for the same job, you can also claim travel between the two as business miles.

 

What are the approved mileage payment rates?

 

For cars and vans, you can claim 45p per mile for the first 10,000 business miles a year and then 25p per mile for every mile after 10,000. For motorbikes, you are entitled to 24p a mile, even after 10,000 and bicycles are 20p for every mile.

If the driver also is carrying another employee during business travel, then an extra 5p can also be claimed towards business mileage.

 

If you would like to find out more, then please get in touch with Bedford Accountants today to see what we can do for you!

All About VAT Returns

The following article will hopefully inform you with everything you need to know about VAT returns.

 

What is a VAT return?

 

A VAT return is a form that you will file with HMRC usually four times a year which will show them how much VAT you are due to pay. You will only need to do this if you are VAT registered. To calculate how much VAT you pay or are owed they look at Your total sales and purchases across a three-month period, the amount of VAT you owe for sales and the amount of VAT you can reclaim for purchases made by your business. If you owe more VAT than you can reclaim then you will need to pay HMRC the difference, if this is not the case, then HMRC will refund the difference to you.

 

 

How to submit a VAT return?

 

You must submit a VAT return online unless for one of the following reasons you are unable to do so…

  • You are unable to because of a disability, your age or the location of where you live.
  • For religious reasons, you do not use a computer.
  • Your business is subject to an insolvency procedure.

 

Here at Bedford Accountants we are experts in this field and be able to guide you every step of the way. As a starting business you have the choice on whether you wish to be VAT registered or not, if you choose not to be then, Bedford Accountants will fill out and submit your VAT return when the time comes to be registered.

All About Income Tax, For Beginners

Income tax may not be something that every person is familiar with. The following article aims to demystify income tax for those of us who may not have encountered it before.

What is Income Tax?

Income tax is a tax that you pay on your income. Not all forms of income are allowed to be taxed, but many are.

Taxable Income

You will have to pay income tax on the following kinds of income:

  • Taxable State Benefits, such as State Pension, Jobseeker’s Allowance, Employment and Support Allowance, Carer’s Allowance, Widow’s Allowance and Incapacity benefit (from the 29th week of claiming)
  • Money earned from employment
  • Income from a trust
  • Most Pensions
  • Rental Income
  • Profits from Self-employment, including profits from websites and apps
  • Benefits from your Employer

Nontaxable Income

You will not have to pay income tax on the following forms of income:

  • ISA Savings Accounts or other tax-exempt bank accounts
  • Tax-free state benefits, including Housing Benefit, Working Tax Credit, Income Support, Child Benefit, Maternity Allowance and Disability Living Allowance
  • National Savings Certificates
  • Premium Bonds
  • National Lottery Wins

Do I Have to Pay Income Tax?

In the UK, most people are entitled to a tax-free personal allowance. Your personal allowance varies depending on two factors, your age and your total annual income. If you are earning over your personal allowance, you will have to pay tax. However, in some cases, the amount of tax you pay can be reduced if you qualify for tax reliefs. To find out more about tax relief and income tax, either contact an accountant or visit the UK Government website: https://www.gov.uk/income-tax/overview.

How Is Income Tax Paid/ Collected?

There are two methods of paying income tax. The first is PAYE and the second in self-assessment.

  • PAYE- the process whereby your employer deducts income tax and national insurance contributions before paying your wage
  • Self-Assessment- this requires you to fill out a tax return every year if your finances are more complicated

Bedford Accountants are a group of professional chartered accountants offering all manner of accounting services in Bedford. If you are looking for help with anything from personal tax, bookkeeping, annual accounts or company formation, look no further than the experts at Bedford Accountants. Contact us today to find out more about how we can help you.

I am Self-Employed. Why Would An Accountant Be Useful To Me?

If you are self-employed, you aren’t legally required to seek the advice and services of an accountant. But why would hiring an accountant be helpful to you? The following article delves into some of the many benefits that hiring an accountant could bring you, especially if you are self-employed.

1. Free Up Your Valuable Time

Your accountant will help to alleviate much of the burden that comes with carrying out your own bookkeeping. That way, you can concentrate on more important issues, like the day to day running of your business. What’s more, they will fit in around your needs so you have a little less to worry about.

2. Help You Fill Out Complicated Government Forms

Government forms and tax returns can be difficult to understand, much less fill out correctly. An accountant will not only have been trained to provide the right kind of information, they will also know when it has to be sent in. Your accountant will also be able to guide you through the process and make sure you have supplied accurate information and appropriate accompanying documentation.

3. Check Whether You Are Claiming What You Are Entitled To

Great accountants will make sure that you are claiming any expenses to which you are entitled. They will also ensure that all of your questions are answered and that you fully understand any accounting processes you are unsure about.

4. Ensure Your Finances Are Kept Healthy

Part of running a business involves making sure your finances are in tip-top condition. An accountant will not only make sure you are getting the most out of your finances, they will offer you advice on areas that could be improved upon.

5. Get Expert Guidance

By enlisting the help of an accountant, you will have access to insider knowledge and tailor-made advice that is specific to the size, industry and expenditure of your business. Additionally, your accountant will be able to advise you on the best methods of maintaining growth in order for you to improve your chances of success.

Bedford Accountants offer all manner of accountancy and bookkeeping services, including corporation tax, VAT returns and payroll. To take advantage of our excellent professional accounting services in Bedford, contact us today.

What Services Does an Accountant Typically Provide?

Although the services an accountant provides can vary depending on the package you decide upon, below is an outline of some of the services to look out for. Furthermore, some services can be provided at additional cost. For example, providing references for mortgages and rental agreements or dealing with correspondence from the Companies House or HMRC.

 

Before you commit to working with a new accountant, make sure you have them explain to you exactly what is included in your particular package. Contact Bedford Accountants for more information on the kinds of services available to you.

 

  • VAT and VAT Returns

If you are looking for accounting services such as VAT returns in Bedford, Bedford Accountants are able to assist any size of business. Furthermore, our team of professional chartered accountants will take care of all of the responsibilities that accompany the process.

  • Corporation Tax

For companies registered with the Companies House, Corporation tax and the rates you pay are related to your business profit. Bedford Accountants provide expert guidance, so you pay the exact amount of corporation tax in Bedford.

  • Payroll & Register Your Business for PAYE

Should you need to take on new employees, payroll can prove quite difficult to manage on your own. Luckily, Bedford Accountants offer excellent services, including payroll in Bedford and PAYE in Bedford.

  • Bookkeeping

Bookkeeping done correctly can ensure that your business has room to grow. If you are looking for help with bookkeeping in Bedford, our team of accountants can help.

  • Annual Accounts

Annual accounts can be tricky to manage. If you require an accountant to carry out annual accounts in Bedford, look no further than Bedford Accountants.

  • Company Formation

If you need help with the financial side of company formation in Bedford, Bedford Accountants team of experienced and professional accountants are here to help.

  • Personal Tax

Personal tax or income tax as it is otherwise known is dependant on the amount you earn. If you are in need of advice and guidance regarding personal tax in Bedford, contact Bedford Accountants.

What Are My Responsibilities to My Accountant?

In order for your accountant to carry out the monthly and yearly tasks and obligations assigned to them in an effective way, you will have to fulfil responsibilities towards them. Below are some of the things you should be aware of in order to facilitate an effective working relationship with your chosen accountant.

  • Provide Accurate Information, On Time

Submit any information they have requested in a timely manner and as accurately as is possible. This is so that your accountant can submit necessary paperwork on time, as often deadlines may be applicable.

  • Declare Expenditure

You must also be willing to provide details of any expenditure, other income, invoices raised and expenses claimed relating to your business. Your accountant will need this information in order to carry out their assigned tasks.

  • Forward Relevant Correspondence

You should forward all correspondence from HMRC or the Companies House as well as copies of your bank statements. Regardless of whether you are using an accountant for personal tax or corporation tax.

  • Understand Who Is Liable

As the business owner or company director is the person who is ultimately responsible for meeting statutory deadlines, you will need to be accurate in your declarations of annual accounts. Otherwise, you will be liable for penalties incurred.

 

Remember that many of the above tasks can usually be completed online, depending on how tech savvy your chosen accountant is.
To enlist a broad range of services from a responsible accountancy firm, contact Bedford Accountants. If you are a small business owner looking for high quality small business accounting services, Bedford Accountants can offer you exceptional service and value for money. All our Qualified chartered accountants are certified and have gained ACCA qualifications. So you can be sure you will be getting the very best service to the highest possible degree of accuracy. Our professional team offer a broad range of accounting services for any business.