What is a ‘personal’ tax return?

Tax returns are issued to people with complex tax affairs and individuals who receive :

• income from self-employment or from a partnership business;
• rent or other income from land or property;
• income from overseas;
• other income.
• If you are a director of a limited company, you will need to complete and file a full tax return.

How We Can Help

At Kidwells our experienced and qualified team will use HM Revenue & Customs approved software to:

• complete your tax return;
• calculate your final tax liability;
• file the tax return online;
• liaise with you on the amounts to be paid and when they are due.

In addition to the above, we can analyse your self-assessment tax return to see if any tax savings can be made. Next, we will review the form to see if there are any anomalies that need to be addressed before the latest tax calculation is submitted.

This process helps to minimise your risk of a Revenue enquiry into your tax affairs.

What is “Making Tax Digital”?

‘Making Tax Digital’ is, simply put, the requirement to keep digital records and submitting them to HMRC using compatible software.

Who Has to Comply & When

• VAT-registered businesses with a taxable turnover above the VAT threshold, are now required to follow MTD.
• VAT-registered businesses below the threshold, for their first return starting on or after April 2022.
• Sole traders & landlords with income over £10,000, from their next accounting period starting on or after 6 April 2023.
• Corporation tax won’t be mandated before 2026.

How We Can Help

Kidwells can help you determine what records you need to keep, what software to use, submission, and more. If you don’t have to follow Making Tax Digital, we still recommend starting as soon as possible to ensure it’s a smooth transition. Contact us for free initial advice.

What Is Bookkeeping?

All businesses are required to keep accurate records for both taxation and VAT (Value Added Tax) purposes, but good bookkeeping practices also benefit businesses by helping you:

• to manage and control the finances of your business;
• with planning for future growth of the business;
• to ensure that your accounts are completed more efficiently thus saving on your accountancy charges.

Bookkeeping can be difficult when you are busy running and developing a business.

Keeping track of money coming in and going out is crucial to keep the cash flow of your business positive rather than negative.

How We Can Help

We will explain what records are required and providing that you supply them to us in a timely manner, we can take care of all of your bookkeeping requirements. With our experience, we can easily take away the hassle of bookkeeping. We offer fixed competitive fees that are payable monthly so that you can spread the cost of bookkeeping.

What is a VAT Return?

You don’t usually need to register for VAT until your turnover reaches a certain limit in any 12 months, or you expect it to do so. This limit – the “VAT threshold” – is currently £85,000. You can register voluntarily even if your turnover is below the statutory registration threshold.

A VAT return is a form to be filed with HMRC which shows how much VAT you are due to pay. The VAT return amount is the amount of VAT reclaimable on purchases you have made.

VAT Registration

VAT registration can add credibility to your business and can also be advantageous if any of the following situations apply, if:

• the nature of your trade means that your costs or purchases include VAT;
• most of your customers are VAT registered and can claim back the VAT that you have added to your sales;
• your supplies are mainly zero-rated for VAT purposes.

However, if none of the above apply it may be better to delay the registration until you have to. Avoid delay if you do need to register, otherwise you will incur penalties and interest charges, as well as having to account and pay over the VAT due from the time that you should have been registered.

How We Can Help

At Kidwells our professionals can complete your VAT returns in a timely manner depending on your business size.

It is important to get payroll correct – you will keep your team happy while you stay compliant with HM Revenue & Customs (HMRC). Whatever the size of your workforce, we’ll deal with all of the processes and paperwork involved, such as payroll. You can then concentrate on your business while staying on the right side of ever-changing payroll rules and regulations.

Our payroll service is comprehensive and confidential and includes:

• Preparing computer generated payslips
• Administration of PAYE, national insurance, statutory sick pay, statutory maternity pay, etc.
• Completion of statutory forms including year end returns, P60, P14 and P35
• Summaries and analysis of staff costs

Other Payroll Considerations at year end:

• Employee summary P60’s;
• P11D and P9D benefit and expenses returns.

Automatic Pensions Enrolment

Even if you only have a few employees, you will make savings by engaging us to administer your payroll.

The law on workplace pensions has changed. 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.

It is called automatic enrolment because it is automatic for your staff. As a business owner, 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.

We can assist you with the automatic enrolment process.

What Are Annual Accounts?

As your business grows your bookkeeping and accounting requirements also grow with it.  A company’s annual accounts – called ‘statutory accounts’ – are prepared from the company’s financial records at the end of your company’s financial year. You’ll have to pay penalties if you do not file by the deadline.

Statutory accounts must include:

• a ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year
• a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year
• notes about the accounts
• a director’s report (unless you’re a ‘micro-entity’)

You send copies of the statutory accounts to:

• all shareholders
• people who can go to the company’s general meetings
• Companies House
• HM Revenue and Customs (HMRC) as part of your Company Tax Return

Sole traders do not have to file the same annual accounts but still need to track their finances to produce an accurate self-assessment tax return.

How We Can Help

Kidwells Accountancy can help you prepare your annual accounts, as well as determine what you need to file to be compliant. Micro-entities, small and dormant companies can send ‘abridged’ accounts, for example.

• The year-end accounts provide invaluable information about your business and are particularly useful. For example, if you wish to make a mortgage or loan application;
• We can advise you on how to strengthen your record keeping procedures. This will assist you in managing your affairs, including the cash flow of the business;
• Organised accounts enable you to analyse your cash flow and budget for the next periods easier;
• In addition, we can use the accounts to help you measure if you are meeting your goals and what actions you need to take.

What Are Company Tax Returns?

After the end of its financial year, a private limited company must prepare a Tax Return as well as its annual accounts.

How We Can Help

At Kidwells Bookkeeping our experienced and qualified team will use HM Revenue & Customs approved software to:

• Prepare and complete your tax return;
• Calculate your final tax liability;
• File the tax return online;
• We liaise with you on the amounts to be paid and when they are due (if any);
• In addition to this we can analyse your self-assessment tax return to see if any tax savings can be made. Before the latest tax calculation is submitted we can also review the form to see if there are any anomalies that need to be addressed. This process helps to minimise your risk of a Revenue enquiry into your tax affairs.

What is Management Accounting?

Management Accounting is vital in today’s challenging environment. Monitoring the performance of your company is essential. Providing you with the information you need to make key management decisions, management accounts aid the running of your business.

How Kidwells can help with your management accounts

We can tailor an accounting package that will provide you with regular reports on your business activity and profitability. These reports can also help you monitor your expenditure, highlighting areas that are draining cash from your business.

• Dedicated accounts contact (inc. Sales and Purchase Ledger payment administration).
• Production of monthly management accounts.
• Quarterly Financial planning meetings with directors.
• Dividend and salary calculations for directors.
• Monthly/Quarterly VAT returns calculations and submissions.
• Year End accounts production.
• Annual return submission.
• Tax advice

Do I need to register with the CIS?

What is a CIS return?