MW Accounting Services provides a range of reliable accounting services to all types of business, which include:

Bookkeeping

Sole trader and partner in a business partnership

If you are a sole trader or a partner in a business partnership (unincorporated business), you must keep records of your business income and expenses (record keeping) for at least 5 years after the 31 January filing deadline of the relevant tax year. In addition, you will also have to keep records of your own personal income. And a nominated partner in a business partnership must keep records of the partnership.

Limited company

For a limited company, the records of the company to be kept include details of the shareholders and directors. Besides, you will also have to keep your company financial and accounting records. These include, for instance, goods that your company buys or debts that your company is owed or owes. The duration for keeping these records is for 6 years from the end of the last company financial year they relate to. Additionally, HMRC can fine your company £3,000 and disqualify a director for failing to keep your accounting records.

Looking for bookkeeping services?, MW Accounting Services can help with:

  • manualised or computerised bookkeeping
  • journal entry
  • bank reconciliations
  • other reconciliations

Accounts

Sole trader and partner in a business partnership

As a sole trader or business partnership, you do not have to file your business accounts to a public authority such as Companies House. There is also no need for you to attach the accounts with your tax return to HMRC. This is because a sole trader and their business are not considered a separate legal entity. However, as self-employed individuals must file a self assessment tax return, it will help with your tax return preparation if the profit & loss account is prepared.

Limited company

Unlike self-employed individuals and partnership, a limited company is legally required to prepare and file company annual accounts (called statutory accounts) to Companies House annually. Furthermore, the annual accounts must be attached with the corporation tax return submitted to HMRC. A dormant company still needs to submit its annual accounts even though there are no significant transactions in that year.

Companies House may fine you and strike off your company from the register if your statutory accounts have not been submitted. Moreover, if you don’t file your company accounts by the deadline, you will be penalised. The penalty you pay depends on when you file your accounts after the deadline (for example, £150 for up to a month late).

Contact us today for our help with:

  • statutory accounts for limited company
  • profit & loss accounts for self-employed individuals
  • balance sheet (if required)

Tax Returns

Sole trader and partner in a business partnership

An unincorporated business will file a self assessment tax return with HMRC yearly. Additionally, a nominated partner of the partnership will also have to file a partnership tax return. The deadline for filing a paper tax return is generally 31 October after the year end. So for the 2019-20 tax return, you must file it by 31 October 2020. But if you choose to file an online return, it has to be filed by 31 January following the end of the tax year. Your online tax return deadline will therefore be 31 January 2022 for the year ended 5 April 2021.

Limited company

A director of limited company must submit its company tax return with HMRC. The deadline is generally 1 year after the company year end. You must attach your statutory accounts with your corporation tax return submission.

Failure to file your self assessment tax return or corporation tax return by the deadline will attract penalties.

Any assistance you require for your tax returns, talk to us today for our tax returns services on:

  • self assessment tax return registration and submission
  • partnership tax return registration and submission
  • corporation tax preparation and submission
  • tax returns advice

VAT Returns

Running a business in the UK, whether a limited company, sole trader or business partnership, you have to register for VAT if your VAT taxable turnover is above the VAT registration threshold (currently £85,000). In addition, you must file your VAT returns, which are generally quarterly, with HMRC. You may want to register for VAT voluntarily even though your taxable turnover is below the registration threshold. VAT de-registration can either be compulsory or voluntary too. Thus you can voluntarily cancel your VAT registration if your VAT taxable turnover is below the deregistration threshold of £83,000.

For VAT, services we provide include:

  • VAT registration (compulsory or voluntary)
  • VAT de-registration (compulsory or voluntary)
  • VAT returns preparation & submission
  • VAT scheme advice
  • general VAT advice

Payroll

You need to register and file your payroll to HMRC using a Real Time Information (RTI) commercial software if you employ someone or pay yourself as a director of your company.

We provide payroll services that include:

  • employer PAYE registration
  • monthly payroll submission
  • pension scheme
  • pension deduction & submission

Property income

Generally, when you have income from your property, you will need to register and file your self assessment tax return with HMRC.

There are different rules for property business:

  1. UK property: you will pay tax on the profit you make from the UK property that you rent out. And you add the profit or loss from all properties together if you have more than one property. The calculation of the tax to pay is then based on the figure that you add.
  2. overseas property: if you rent out both UK and overseas properties, you must keep the overseas property profits and losses (and its records) separately from your UK property. You can set off your overseas property losses against other overseas properties gains or carried forward and set against foreign property future profits. They can never be offset against your UK property
  3. furnished holiday letting (FHL): there are criteria you must meet before you treat it as FHL. There are tax advantages for FHL letting, for example
    1. interest expenses are deductible
    2. receives capital gains tax relief
    3. income is relevant earnings for pension contributions
  4. rent a room scheme: if you rent a room in your own home and the rent is less than £7,500, you do not have to do anything (no need to register for self assessment) and do not have to pay tax. It means you can earn £7,500 tax-free but if the rent is over this £7,500 threshold, you must register and file your tax return

We offer our assistance in property income which include:

  • self assessment tax registration & submission
  • rental property income tax computation
  • advice

Capital Gains Tax

Capital Gains Tax is paid on the profit you make when you dispose of your asset. Reliefs such as Rollover Relief, Gift Relief or Business Asset Disposal Relief are available to reduce the tax you pay on your capital gain. Disposal includes:

  • selling
  • giving away (as a gift)
  • transferring to someone else
  • swapping for something else
  • receiving compensation

Some assets, for instance, cars, UK government securities (gilts) or wasting chattels such as racehorses and greyhounds are exempt from capital gains tax. So if you own these assets and sell them even with high profit, you do not have to pay tax on the gains you make.

Our accountants are fully qualified with extensive experience and expertise in helping clients with all the above services. Our friendly and reliable accounting services are flexible and can be tailored to suit your business budgets or requirements. Some clients attempt to do their bookkeeping, accounts and/or tax returns themselves to save their accountancy fees. But they later realise that it is much better to leave these time-consuming tasks to their professional accountants so that you can concentrate on what you do the best; growing your business. If you are looking for peace of mind accounting services, please feel free to contact MW Accounting Services and we are very pleased to help you.