UK Accountancy Services
companies in the UK have to maintain accounting records, Our comprehensive accountancy service combines compliance with the production of the company’s accounts.
Our experience of accountancy and tax & financial planning means we can provide a fixed fee, limited company Accountancy Services.
Our inclusive low cost fixed fee accountancy packages includes completion of accounts, corporation tax computations, your own dedicated accountant and filing your Annual Return.
We tailor our accountancy packages to suit your business needs, with no hidden fees and no extra charges. Choose from one of our packages, or ask us to quote you.
A UK company needs to keep accounting records that include:
- all money received and spent by the company
- price, location and depreciation records of all assets owned by the company
- details of all debts that the company owes or is owed
- proper records of all stock that the company owns at the end of the financial year
- records of how stock is valued for accounts- there are accounting rules on this, and we can advise you
- a record of all goods bought and sold
- who the goods were bought from and sold to- this is very important for VAT purposes
UK Tax Return
All UK companies; whether they are limited companies or limited partnerships need to lodge tax returns.
- A full copy of statutory accounts in UK generally accepted accounting format
- All records of money transactions including bank account records
- All records of money spent on behalf of the company, including petty cash books and cash receipts
- Order and delivery notes
- All receipts of money: invoices, contracts, sales books and till rolls
Corporation Tax work in the UK
The UK operates a self assessment system for corporation tax. This means that it is up to the taxpayer to state that corporation tax is due, and to register for taxes and to file returns accordingly. It is not the responsibility of HM Revenue & Customs to work out how much corporation tax to pay, so if a company starts, and they do not register for corporation tax, then they will be fined.
The company must
- inform the HMRC that they have started business by registering on-line. This is usually done by the tax agent as it is a little complicated, and any problems will not be easily resolved by a company which are not used to HMRC ways of dealing with taxpayers
- file a company tax return and supporting documents online and in the format iXBRL, through software fit for purpose.
- pay the right amount electronically. A tax agent will use the HMRC online method, to make sure that payments are not lost
Registration for Tax
HMRC encourages a company to register for tax as soon as they are incorporated. Through contracting an accounting and tax service this is taken care of.
- if the company is not intending to trade for the first few month, the company still needs to register and basic details need to be lodged
- when the company starts to trade, a tax period begins, so the date needs to be communicated along with the activity, place where the work takes place. If there is no specific place of work, it is assumed that the company operates from the directors' addresses, so details do need to be correctly communicated
The Tax Return
Companies must file their company tax return within 12 months of the end of their accounting period, and the tax is due to be paid 9 months after the accounting reference date - so a tax agent will ensure that a return is lodged promptly.
If the company is late in filing a return; the company will be charged an automatic penalty, even if it does not owe any corporation tax.
Correspondence with Tax Authorities
- Lodging information
- Calling the agents phone line in case of problems
- Making appeals and agreeing liabilities
The need to register and have a tax agent
All UK limited and public limited companies; that is to say companies that are incorporated in the UK, as well as overseas companies doing business in the UK, need to register for and pay UK corporation tax on their worldwide profits. There is an understanding around that companies only pay tax on profits generated in the UK, but this is not the normal arrangement, so a new company needs to prepare accounts fully showing your activity and pay UK tax on all worldwide profits, and then look at overseas tax or the lack of it.
Tax computations and returns need to be prepared and filed on a regular basis. With a tax agent, then we advise of when returns should be filed and when tax should be paid.
The basic price for accounting services is based on the number of the monthly accounting entries (documents like sales and purchase invoice, receipts, report etc).
The price includes all the following services, as needed:
- Checking and entering of source documents (general ledger)
- Collection of source documents
- Fixed Assets accounting
- Settlements with reporting persons
- Purchase and sales ledgers
- Payroll accounting (up to 5 employees, 1 employee = 1 source document)
- VAT, tax accounting, tax reporting
- Management reports
- Submission of declarations to the Tax and Customs Board
- Access to web-based accounting software
- Getting the digital signature for the company from HMRC
- Appointment as tax agent for the company and for individuals within the company if needed
- Advice on what needs to be filed with the tax authorities
- Advice on status for VAT or other schemes related to indirect tax
- Initial warnings about the details of information needed
General processing work
- Agreeing with the client the format that we will use to register accounting entries. In most cases, a client will have a basic system in place to produce trial balances, but we have the resources to do accounts- even logging individual entries and doing periodic bank reconciliation
- Agreeing deadlines to send management account information to the client
Quarterly or periodic work
- Periodic accounts where needed, in order to lodge a VAT return
- Lodging VAT returns
- Reconciliation of figures where needed on a quarterly basis
- Letting the client know about deadlines
Annual accounts and submission of Tax Return
- Compiling and lodging the annual accounts electronically in iXBRL format to the Registry of Companies in accordance with accounting rules and legislation
- Advice on what sort of accounts and details that should be filed for the Registry
- Compiling and lodging the annual electronically in iXBRL format to lodge with the tax authorities in due time, in accordance with the rules about what needs to be lodged
Accountancy and Tax work for an LLP
A Limited Liability Partnership never pays tax in its own right, the tax is due on the member of the partnership in their own country of tax residency.
However the following needs to be done in all cases:
- Financial statements need to be lodged for all LLPs with Companies House. The abbreviated accounts that can be lodged with Companies House are specific to an LLP.
- Tax returns need to be lodged for every accounting period for the LLP itself and for all the members
Please note the following:
- The format of the balance sheet is different to that of a Limited Company. This is not apparent from what is lodged at Companies House: as companies tend to lodge abbreviated versions of what the tax authorities need
- The members have to lodge tax returns even if the company has not traded
- If the member is a limited company; the tax return lodged for the member needs to be accompanied by company accounts and some information about where the company is considered to be resident for tax purposes.
- If the member is a private individual: details of the income they derive from the LLP needs to go on their personal tax return. If the member is a UK taxpayer, then we can advise. If the member is non-resident, the UK tax return for the private individual will only contain information about the partnership profits, which of course will not be taxed in the UK.
An LLP is often a good model for international business, because it is not taxed in its own right. However, there are strict rules about what needs to be filed. Typically we do:
- Preparation and lodging of accounts for the Partnership
- Preparation and lodging of accounts for any partner which is a limited company
- Preparation and lodging of a tax return for a private individual