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.

5 Reasons Why You Should Hire an Accountant

1. Financial projections

If you are the owner of a small business you will be accustomed to managing all of the various aspects of what your business entails. However, you may want to consider enlisting the services of an accountant. An accountant can help you to gain an excellent insight into the prospective success of your business model. They will likely have access to sophisticated software that will enable you to gain invaluable insights into the sorts of numbers you are working with, through financial projections and reports.

2. Legal Matters

An accountant will be able to advise you on the legalities of your chosen business model. Alternatively, if you are still in the early stages of setting up, your accountant can help you choose the one that is right for you. Furthermore, they will help you negotiate the inevitable pitfalls that could arise.

3. Legislation and Tax

Closely related to legal matters, Government legislation and tax laws can be extremely confusing, daunting and difficult to negotiate. An accountant not only has been trained in this area but also has developed a deep understanding of how these systems work and consequently, what you and your business can do to work within these parameters. Accountants can also help with dreaded paperwork, such as tax and VAT returns that come with the running of any business.

4. Keep Your Finances Under Control

If you find yourself in the unfortunate position of financial difficulty due to a loss of control or a limitation of understanding, a good accountant will assist you to overcome these, thereby helping you gain back control.

5. Keeping Up with the Growth of Your Business

Along with the growth of your business comes the responsibility of audits, spending more money on resources and possibly having to deal with banks. These aspects are ones that you can afford to delegate to a professional. An accountant is well equipped to help you when it comes to convincing banks to agree to a loan, checking whether you can afford that new office building and, importantly, helping you deal with an audit. Audits, in particular, are expensive, time-consuming and highly stressful. However, an accountant can guide you through the process in a way that will make you wonder how you ever did without one.
If you are looking for fully accredited accountants and bookkeeping or accounting services in the Bedfordshire locale, get in touch with Bedford Accountants. Our team of professional and exceptional accountants are highly experienced in all aspects of accounting.

Why is Enlisting the Services of an Accountant so Useful?

If you own a business of any size, employing the services of an accountant is essential. An accountant is a highly trained professional that can advise you on the financial wellbeing of your business. As well as the complex legalities of all aspects of your company finances. Crucially, as well as providing varied financial information of all kinds, the right accountant will save you time and money. And with their advice and guidance, they will become a trusted and valued asset to your business.

Maintain Steady Growth

Employing an accountant is key if you would like to maintain steady growth from the start. An accountant enables the smooth cash flow of your business. Allowing you to make important decisions about the running of your affairs. Without one, pitfalls could prove troublesome as you might find yourself struggling to maintain what is an inherent part of your business: your finances.

Knowledgeable and Responsible

It is of the utmost importance for you to choose the right accountant for you depending on your needs. This means that you should look for one that is certified and experienced in dealing with businesses of a similar revenue. Accountants who are ACCA qualified have undertaken an advanced degree level qualification that demonstrates that the holder is knowledgeable, regulated and responsible. Meaning they are unlikely to take part in risky practices that could jeopardise your success. Furthermore, their training has enabled them to navigate the pitfalls commonly encountered in the world of accounts. For example, corporation tax, VAT returns, payroll, bookkeeping, company formations and taxation laws.

Benefit Your Business

Additionally, Many businesses like to take advantage of an accounting service local to them, as it helps make the communication process that much easier. However, as long as your accountant is willing to negotiate, and understands and appreciates the necessity of undertaking practices in accordance with the way you would like your finances run.  Your business will surely benefit from their expertise.
If you are ready to enlist the services of an accountant in Bedford, click here.