Frequently asked Questions and Answers
I have been caught out by “Fixed Fees” before, what will I be charged?
Our fixed fee pricing structure is agreed during our engagement process and it details all the work we will do for you or your business. Everything that we do that falls within this agreement is included in the fixed fee quote we issue you with. We seek absolute clarity for both our sakes as no one wants to haggle or cause upset at the end of the day.
How much should I be taking out of my business ?
Well if you are a sole trader than this is simply the profit you generate which is one reason why a Limited company can be tax beneficial if your profit exceeds £45,000 (higher rate tax). If you are a Limited company then the Gross profit generated less the Corporation Tax will give us an indication of the gross amount that can be extracted. This will be partly through the company payroll (allowable expense) dividends and any other tax efficient method available to us. Again this will be discussed at the engagement stage and monitored by us if we undertake your bookkeeping.
Should I be a Limited company or Sole trader?
There is no obvious answer as it depends amongst other things on:
- The projected profit
- The risks of the business
- Commercial consequences
- Profit retention and potential growth
When should I become VAT registered
Well you need to log into our accountant links and keep an eye on HMRC but at the moment if a business has a turnover of VAT taxable goods and services that in any 12 month rolling period exceeds £85,000 or is expected to exceed this figure then they must be VAT registered. We can set this up at a nominal cost. Please note this is any 12 month continuous trading period irrespective of accounting or tax year end dates.
VAT Invoice or Cash accounting?
This will depend on the individual business, the bookkeeping package and which is the most cost effective method.
VAT – Standard or FRS (Flat rate scheme) ?
This will be determined by the type of business and the VAT rules at the time. We will walk you through the options and can even calculate the effect on your business given certain criteria.
Any other questions
It is possible that our Accountant links tab will direct you to the source of many other answers.
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