Management Accounts (All Entities)
Whether we input the initial data or it is provided by the client, we produce regular trading, profit and loss accounts and balance sheets to suit business needs. Typically, this may be monthly or quarterly or at other agreed intervals.
Sole Trader Accounts
Most clients rely on an annual set of trading, profit and loss accounts together with a balance sheet. This is primarily to establish profits for income tax and Class 4 National Insurance Contributions (NIC) purposes, as well as drawings.
The data may be prepared by the client and provided to us in a number of ways, including manual cash book for receipts and payments, spread sheets or an accounting package such as SAGE. The latter two often provided by electronic transfer or a computer memory stick. The client will also provide supporting sales invoices, suppliers invoices, bank statements and any other relevant information.
Partnership Accounts (Unincorporated)
For the same reasons as sole traders; but identifying any transactions specific to each partner, such as capital introduced, capital expenditure, partner drawings and legitimate expenses claimed. In particular, profit shares for personal income tax purposes.
Limited Liability Partnership (LLP) Incorporated Accounts
In most respects these are the same as unincorporated partnership accounts; but with a particular requirement to identify for partners, (here known as the members), within the members' interests, which form part of the published accounts, the members interests in the reserves, i.e. profit less drawings; and loans and other debts due to the members, as well as the net position of all classes.
Incorporated Private Limited Company Accounts
In the main these are two types of companies that we will deal with: those companies limited by Shares and companies limited by Guarantee.
In addition, we only deal with Small and Medium Enterprises (SMEs) that do not require an annual audit. By and large these are either under the Micro-entities Regime Financial Reporting Standard FRS105 or under FRS102. The latter requires somewhat more reporting requirements than the former; but a good deal less than hitherto.
Business and Personal Tax and Tax Planning
This can include pulling together some or all of the afore-going types of activity and adding in any other activities with which the client is involved such as investment income, company dividends, bank or building society interest, pension contributions, pensions/annuities received and Capital Gains Tax (CGT). Main Heading 3 looks at each in turn.
Making Tax Digital (MTD)
This new concept, adopted from the successful experiment in Sweden, will revolutionise all types of accounts for business and landlord purposes.
The new timetable, announced on 13 July 2017, will apply only to businesses where turnover is above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes; they will only need to do so from April 2019.
Businesses will not be asked to keep digital records or to update Her Majestys Revenue & Customs (HMRC) quarterly for other taxes until at least 2020.
Making Tax Digital (MTD) will be available on a voluntary basis for the smallest businesses and for other taxes.
This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
These changes will be legislated for as part of the Finance Bill 2017.
Changes to VAT reporting will come into effect from April 2019. From that date, businesses above the VAT threshold will have to provide their VAT information to HMRC through Making Tax Digital software.