Wasley Chapman LLP Frequently Asked Accountancy Questions

 

  • How Easy Is It To Change Accountants?

When you decide to switch to us, we will fully manage the transition and ensure that the handover is seamless. We will take care of everything including contacting your current accountant and explaining you are moving away, drafting a letter confirming the move, arranging for the transfer of records, obtaining copies of your accounts and tax computations, and notifying HMRC and other government offices that we are looking after your business affairs.

  • What Information Is Needed To Receive a Quote & Advice?

Firstly, to get a feel of the amount of work involved, we’d need a very brief review of your books and records. Additionally, we’d need a copy of your last financial accounts prepared by your current accountant to provide relevant advice. If there’s anything specific you need help with, please mention it when you get in touch.

  • What Are The Deadlines For Personal Tax/Self Assessment Return Filing?

Under self assessment, your online return must be filed by the 31st January. If you fail to file the return, you automatically receive a £100 fine – even if you don’t owe any tax or have paid the tax you owe. If, for whatever reason, you miss the deadline, the longer you delay the more you pay.

  • What Are The Deadlines For Corporation Tax Filing?

The deadline for filing your corporation tax return is within 9 months of the end of your company’s corporation tax accounting period. Yearly filing would include the submission of your company tax return form and other supporting documentation. If you fail to file your return on time your company will be charged an automatic penalty, even if it does not owe any corporation tax. Keeping this in mind, your actual payment deadline can vary depending on how much taxable profit your company or organisation makes. This is determined by many factors, including the amount of your taxable profits and whether you operate a group of companies. It pays to complete your tax return well in advance!

  • What is the current National Minimum Wage?

The current National Living Wage & National Minimum Wage rate per hour depends upon your age and whether you are an apprentice. The current rates (as of April 2017) are as follows:

25 & Over – £7.50

21 – 24 – £7.05

18 – 20 – £5.60

Under 18 – £4.05

Apprentice – £3.50

  • What is the VAT registration threshold?

The VAT registration threshold tends to be set each year in the budget; for the 2016/17 tax year it is set at £83,000. It is compulsory for you to register for VAT if your VAT taxable turnover is more than the threshold amount for the previous 12 months or if you expect it to reach or exceed that amount in the next 30 days. You must also register for VAT if you take over a VAT registered business as a going concern.

  • I am late on my confirmation statement and I received a letter from Companies House warning of criminal proceedings and removal from the registrar. What are the penalties and how do I appeal?

Failure to file your confirmation statement even after receiving reminders can move Companies House to either prosecute you for criminal proceedings or strike your company off after a month or so for an outstanding Confirmation Statement. All companies irrespective of size or status. Including dormant, flat management and charitable companies get penalised for not filing their annual accounts on time. It would be best to get in touch with us. We will coordinate with Companies House on your behalf and set out an appeal process to postpone any action while we get you up-to-date on your confirmation statement. You might have to pay the financial penalty but an early submission should lead them to drop any legal action.

  • Is it possible to convert a company limited by guarantee to limited by shares?

It is not possible to re-register a company limited by guarantee to limited by shares. However, it is possible to incorporate a new company limited by shares under the same name and then transfer the business and assets from the company limited by guarantee to the new one. The newly formed company will become a separate legal entity, with a different company number from the previously existing company. It will still need a new VAT registration, and existing long term contracts such as bank arrangements, leases, etc. will have to be transferred to the new company.

From an accounting point of view the most convenient date for the transfer will be at the end of the existing company’s financial year so that the accounts can be drawn up for the whole year.

  • What are the legalities regarding the death of a director?

To notify the death you should submit form 288B at Companies House, and form 288A for the appointment of any new directors. The only things that don’t have to be notified at the time are transfers of shares; these are reported on the annual return. Since time is of essence in such situations, it’s advisable to consult a solicitor as things could get tricky.

In terms of the bank account, whoever is the executor of the will should be able to co-sign anything for the bank. The company should therefore be able to run as normal.

  • What do I have to pay in taxes this year?

For personal tax the amount you need to pay will depend upon how much you earn and whether you’re employed or self employed. The amount is calculated using different tax rates and a series of tax bands. To work out how much corporation tax your company or organisation must pay for each accounting period will depend upon your company or organisations taxable profit. It can easily be calculated by filing a corporation tax return. At the moment, you can pay and file your company tax return online or on paper. Before we delve deeper into the world of taxes, it is worth pointing out that trying to calculate your taxes can be complicated, challenging and time consuming; it is certainly one of those areas where using an accountant is well worth the money. Get in touch with us if you would like to discuss this further.

  • Why should I choose Chapmans for my accounting & tax needs?

All of us here at Chapmans work hard to deliver a first class service to our clients. We provide a full range of accountancy, audit, advisory and financial solutions to help your business succeed. As a chartered accountancy firm who have been in business for 100 years, our clients benefit from our knowledge and experience in the industry. Our relationships with our clients are based on trust, reliability and great communication. Here’s just a few of the benefits of being our client:

  • Fixed fees
  • Unlimited support
  • Timely turnaround of work
  • Easy monthly payments
  • Regular meaningful contact with the firms partners
  • A proactive approach to your financial and business needs
  • Regular mail shots on tax planning tips and opportunities
About the author

© 2018 M. Wasley Chapman