Here you can find useful resources to assist you in making decisions about your business and personal finances.

You usually have to pay your employees through PAYE if they earn £123 or more a week (£533 a month or £6,396 a year).

You do not need to pay self-employed workers through PAYE.

Working out if someone is an employee or self-employed

‍

As a general rule, someone is:

-employed if they work for you and do not have any of the risks associated with running a business

-self-employed if they run their own business and are responsible for its success or failure

The process is straightforward and we will deal most of the administrative tasks for you. We will write to your old accountants to arrange for transfer of all required information and documentation and we will send you an engagement letter confirming the areas and terms under which we are to act for you.

The amount of tax you pay will depend on your individual circumstances, the types of income or gains you receive, and any other tax reliefs that you can claim.

One of the most important decisions to make when starting a business is to choose a business structure that suits you. ​

Should your business be set up as a sole trader, partnership or company? What are the advantages and disadvantages of these structures? How does the business structure impact my tax obligations? How much time and costs are involved in setting up the business structure that suits you? How much control do you want to have in your business? What about asset protection and fundraising? What if you want to exit your business in the future? ​

You should carefully consider these factors when choosing a business structure. No matter how you decide to proceed, an accountant can assist you in weighing your options and mitigating risks.

As a business owner, you should keep detailed records of all transactions. These include:​

• Statements for your bank and/or credit card accounts
• Copies of all your sales invoices
• Copies of all your receipts for purchases or expenses
• Company constitutions
• Trust deeds
• Share Registers if applicable
• Annual financial statements and reports

There are also a number of legal documents that you need to keep, such as employment contracts, contracts with suppliers or trading partners; a lawyer can advise you on this.

The current rate of Corporation Tax is a flat rate of 19% but as from 1 April 2023, that is changing.

   There will be 2 rates of CT:

1. For profits below £50,000 it remains at 19%
2. For profits above £250,000 it will be a flat rate of 25%

For profits between these two amounts, there will be marginal taper relief, which is a throwback to yesteryear.

The answer is ‘it depends!’.

     If you have no other income and your dividend income is below £12,500 it is wiped out by your personal allowance and hence no tax is payable.

     The next £2,000 of dividends received are tax free, but thereafter the tax rate on dividends increases as you move from being a  basic 20% rate taxpayer to a higher 40% or 45% rate taxpayer.

    The dividend rate is increasing after tax year 2020/21 by 1.25% as set out below:

Tax Year                               Basic rate 20%                   High rate 40%                    Highest rate 45%

2021/22                                7.50%                                    32.50%                                  38.10%

2022/23                                8.75%                                    33.75%                                  39.35%

If you cannot pay your Self-Assessment tax bill next January  then you might be able to set up a Time to Pay Arrangement  (‘TTP’)  arrangement which lets you pay your Self-Assessment tax bill in instalments.

You must call the Self-Assessment helpline (details below) and explain your predicament; HMRC are willing to help with payment arrangements, but may ask for evidence of your income and expenses and reasons why you cannot pay;  

Only agree to monthly amounts that are affordable and do not be pressurised into making unrealistic payments that you cannot maintain.

Self Assessment Payment Helpline
Telephone: 0300 200 3822