Should I register as a sole trader or Limited company?
You can extract money out of the business by way of dividends as a Limited company and save the national insurance you would pay as a sole trader. We can do a comparison, free of charge to check whether your business should be a sole trader or Limited company.
Should I register for VAT?
If you are over the VAT threshold you will have to register (£85,000 per year).
Alternatively if you are under the threshold it may still be beneficial to register if you solely work with VAT registered businesses that are happy for you to add VAT on your invoices. If you sell your services of have very few expenses that are subject to VAT you should look at the flat rate scheme.
What can I claim by way of expenses?
You can claim any expense that is wholly and exclusively for the purpose of your business.
This includes your accountancy so you will even receive tax relief on our invoice.
There are other costs you can claim that many businesses aren’t aware of. As an example if you work from home you can claim up to £26 per month as use of home as office. Every penny counts.
Should I claim for fuel or mileage?
Well this all depends on what car you drive and how much business travel you do.
Frequently, as you can claim 45p per mile for your first 10,000 miles in any tax year, mileage works out the better option.
If you would like to email Kayleigh with your vehicle make and model, how many miles you travel for business each year and whether you are a sole trader or Limited company she would be happy to calculate this for you.
How should I keep my books and records?
We offer training on accountancy packages including Xero, Freeagent, Sage, VT and Quickbooks.
If you prefer to keep your records simply on spreadsheets we have templates we can email to you. However, all VAT registered businesses need to be using a software package to file their VAT returns under HMRC's Making Tax Digital scheme.
You can also keep a manual cash book. Many of our clients opt for Cathedral or Simplex cash books.
We can of course complete your book-keeping for you, if you prefer.
Got your own question?
Kayleigh is available on 07525 421 454 or you can email her at Kayleigh@darceyandbateaccountants.co.uk
You can also pop in to our office. We are open 9am – 5pm Monday to Friday, or at evenings and weekends by appointment.