Accountancy and Tax, Explained in Plain English

Every limited company has to prepare accounts for each financial year. They show what the company earned, what it spent, and what it owns and owes at the year end, and they are filed with Companies House and used for the company’s tax return.

We prepare your final accounts from your bookkeeping records and go through them with you before anything is filed, so you know what the figures mean.

• Statutory accounts prepared from your records
• A plain-English walk-through before you approve them
• Filing with Companies House and use in your Company Tax Return

Year-end accounts bring twelve months of records together into one reliable picture of how the business performed. For sole traders and partnerships they are the basis of the tax return; for companies they lead into the final accounts.

We reconcile your records, make the year-end adjustments and produce a clear set of accounts you can use with confidence.

• Reconciling bank, sales and purchase records
• Year-end adjustments, explained
• Accounts ready to support your tax return

Companies pay Corporation Tax on their taxable profits and report them to HMRC in a Company Tax Return. The return is built from the company’s accounts, with adjustments set out in a tax computation.

We prepare the computation and the return, explain the amount due, and submit the return to HMRC on the company’s behalf.

• Tax computation prepared from your accounts
• Company Tax Return prepared and submitted
• A clear explanation of what is due

We will make sure reliefs and allowances you are entitled to are considered, but we cannot promise a particular tax saving.

A VAT-registered business reports the VAT it has charged customers and the VAT it has paid on purchases, and pays HMRC the difference or claims it back.

We prepare your VAT returns from your records, check the figures and submit them for the periods that apply to your business. If you are thinking about registering for VAT, we can support you with that too, where applicable.

• VAT returns prepared and checked
• Submission for your VAT periods
• VAT registration support, where applicable

Making Tax Digital is HMRC’s programme for keeping tax records digitally and sending information to HMRC using compatible software. The requirements and deadlines vary according to the tax involved, your circumstances and the rules in force at the time.

We help eligible clients organise their records and prepare the relevant returns in line with the requirements that apply to them. For the current rules, see HMRC’s Making Tax Digital guidance on GOV.UK (opens in a new tab).

• Record-keeping support
• VAT return assistance
• Guidance on the reporting requirements relevant to you

Using our services does not by itself guarantee compliance. Meeting the requirements also depends on accurate, timely records from you.

Self-Assessment is how HMRC collects tax on income that is not taxed at source. People who commonly need to file include the self-employed, landlords and company directors, among others.

We gather your income and expense details, prepare the return, and explain what you owe and why before it is submitted.

• Income and allowable expenses brought together
• Return prepared and submitted to HMRC
• A plain-English summary of the result

Some taxes and schemes ask for information during the year as well as a return at the end of it. Where that applies to you, we help you prepare each periodic update and the final annual return, so the figures stay consistent from one to the next.

Whether quarterly reporting applies to you depends on the tax involved and your circumstances. We will tell you what is relevant in your case.

Under the Construction Industry Scheme (CIS), contractors deduct money from payments to subcontractors and pass it to HMRC as an advance towards the subcontractor’s tax. Sometimes more is deducted than is finally due.

For subcontractors

We bring your CIS deduction statements together with your income and expenses, prepare your tax return, and claim a repayment where tax has been overpaid.

For limited companies

Limited companies that have had CIS deductions taken from their payments deal with them through the payroll process. As part of our payroll service we record the deductions and include them in the company’s payroll reporting to HMRC.

Whether a refund is due, and how much, is decided by HMRC. We cannot guarantee a refund or its amount.

Running payroll means working out pay, tax and National Insurance for each employee, giving them payslips and reporting to HMRC each time you pay them. We run payroll to your pay schedule so staff are paid correctly and the reporting is done.

• Payslips for each pay period
• PAYE and National Insurance calculations
• Payroll submissions to HMRC
• Starters and leavers processed

Workplace pension administration support

Employers also have workplace pension duties. Where applicable, we support the administration involved, including tasks relating to The Pensions Regulator (TPR) and NEST.

HMRC sometimes writes to ask questions about a return or to open a compliance check. These letters can be worrying, and they usually come with a deadline.

We help you understand what is being asked, gather the information needed and prepare a clear, organised response.

• Explaining what HMRC is asking for
• Gathering and organising the information
• Preparing your response

The outcome of any enquiry is decided by HMRC. If you receive a letter, get in touch promptly so there is time to respond.

Capital Gains Tax can arise when you sell or give away an asset that has risen in value, such as a property that is not your main home, or shares.

Individual Capital Gains Tax returns

We work out the gain, take account of the costs and reliefs relevant to you, and prepare the return reporting it to HMRC.

Company Capital Gains Tax returns

When a company disposes of an asset, the gain is generally dealt with through the company’s own tax return. We calculate the gain and report it alongside the company’s other tax filings.

Reporting requirements for disposals depend on the asset and your circumstances. Contact us as early as you can if a sale is planned or has completed.

Forming a limited company means registering it with Companies House, then putting the right accounting and tax arrangements in place. We help with the application and with the set-up that follows, so the new company starts on an organised footing.

• Preparing the company formation application
• Accounting setup guidance
• Corporation Tax return support
• VAT registration and return support, where applicable
• Payroll and CIS assistance
• Financial year-end accounts

Same-day formation. We offer same-day company formation assistance, subject to successful verification, complete documentation and Companies House processing. We cannot promise that every company will be registered on the same day.

Property and tax become more involved when there is an overseas connection, for example where an individual or company based outside the UK receives income from UK property. Where applicable, we prepare the property-related UK tax returns required.

The rules depend on residence, the type of property income and your circumstances. Tell us about your situation and we will explain which returns, if any, are relevant.

Companies have ongoing obligations to Companies House as well as to HMRC. We provide Companies House-related assistance as part of supporting your company.

Identity verification

Companies House asks directors and other relevant people to verify their identity. We can assist with identity verification only where we hold the authorisation the law requires, and subject to the applicable requirements.

Please ask us to confirm our authorisation before relying on us for identity verification.