Frequently asked questions
It's a difficult decision choosing an accountant and you've probably got some questions you want to ask.
There are many, and we cannot possibly address them all here, but we have tried to identify those we most commonly hear.
What is the deadline for submitting my TAX return?
The deadline to file paper Self-assessment is the 31st October. Meanwhile, the deadline for online tax return is the 31 January. If you contact us up to 4 pm on 31st of January, we will be able to file your Tax return on time.
How much TAX refund will I get?
On average our Self-employed clients get £1000 tax refund. However, every situation is different. Depending on your income (turnover) and expenses you can get up to ALL TAXES paid. We will provide you with a Tax Refund calculation and discuss all allowable expense which could be added to your tax return to increase a refundable amount.
What is corporation TAX?
This is tax paid by UK companies on their profits. Rates are fixed each year by the government. Currently (from April 2017) small companies pays 19% Tax on their profits.
What is VAT?
VAT stands for Value Added Tax. If you are VAT registered you need to add 20% (2017) on top of your sales price. To make things a little more complicated there are certain things that are zero rated like: food, books, newspapers, magazines, young children’s clothing and footwear.
Also, some goods and services have reduced rate (5%) VAT, such as children’s car seats, home energy and energy-saving materials installed in residential properties.
When should I register for VAT?
You may need to register for VAT if you are doing business in the UK as an individual, partnership, company, charity or any other organisation or group of people acting together under a specific name.
Registration for VAT is compulsory if your annual turnover exceeds £85,000 (2018) or you expect the turnover to be higher than that amount in the next 30 days. Remember to regularly check if your turnover has exceeded the threshold and you need to register. However, if your turnover has exceeded the registration threshold temporarily, you may apply for exception from registration.
Can I register VAT if my turnover is below the threshold for registration?
If you are doing business in the UK but your turnover is below the threshold for registration, you may register for VAT voluntarily. You may find it beneficial to be able to charge VAT on your sales and claim back VAT on your purchases. For example, if there is a zero VAT rate for the items you sell but you buy standard-rated items, HMRC will give you a VAT refund.
Note, that if you voluntarily register for VAT, you have the same rights but also responsibilities as in the case of compulsory registration.