Latest news from HMRC is the Flat Rate Scheme for VAT is changing on 1st April 2017.
There will be a new VAT flat rate of 16.5%. It will apply to businesses in any sector, however, only if they have limited costs.
HMRC have said a limited cost trader will be defined as one whose VAT inclusive expenditure on goods is one of the following:
- less than 2% of their VAT inclusive turnover in their prescribed period
- greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if not one year then it will be the relevant proportion of £1000).
If you are using the Flat Rate Scheme or you are planning on joining the scheme then you will need to decide whether you should use this new rate.
Chances are, as a sole trader, you are going to be so busy on what you actually do for a living that the last thing you want to do is worry about your finances. So here are a few easy, daily tips which will save you a headache at the end of the year when handing over to your bookkeeper:
Don’t mix business with pleasure – Get yourself a business bank account. This will enable you to keep your business money to itself, from this you can pay yourself from drawings. At the end of the year or throughout the year it will speed up the processing of your accounts and hence, saving you money.
Always ask for and keep receipts – You need to be able to prove what you have bought throughout the year. The best and easiest way to do this is by keeping your proof of purchase. If you are not offered a receipt then ask for one. This way you can file it away and leave it for your bookkeeper.
Keep a sales record – It’s always a good idea to keep a record of your sales both by managing a spreadsheet of running totals and also a folder with copies of all your sales invoices. Doing this will help you check that you have accounted for everything and nothing has gon amiss.
Keep note of your expenses – As well as keeping your receipts, try to keep a running tally of your daily expenses. Even if it’s just parking for £1.00, note it down. This will also help you if you missplace a receipt.
Check and keep your bank statements – These are vital documents for the smooth running of your business. Not only can you check the status of your bank account but they will really help your bookkeeper reconcile your transactions at the end of the year.
Give your paperwork priority – The sooner you can get your paperwork to your bookkeeper the sooner it can be processed. You don’t want any nasty surprises at the end of the year by leaving your bookkeeping to the last minute.
Save for your tax – It’s a good idea to save for your tax, whatever tax you are registered for, be it income or VAT and not forgetting your national insurance. Your bookkeeper can help you with this. A good rule of thumb is to put away between 10% and 15% into a savings account everytime you are paid. This will help take the brunt off any tax bill you receive at the end of the year.
If you’re not sure, ask! – Your bookkeeper is there to help you, if you have a question just stick it in an email
Following these easy steps will help to keep you on top of things , your bookkeeper happy and your bookkeeping expenses lower .
Contact me for more advice . I can help set up processes to help us easily work in your books together .
The software we use can easily calculate your tax liability.
Using reports we can easily let you know how to save for your tax payments so you don’t need to damage your cash flow.
Contact us today to find out how we can help you!
Are you a sole trader or self employed?
If so, it’s time to start thinking about finalising your books for the tax year 2015-2016.
If you are submitting online your deadline is 31st January 2017, however, it’s wise not to leave it until the last minute just in case you have a tax bill to pay.
At MJR Bookkeeping I can hep you bring your books to a close ready for your accountant or even submission to the HMRC.
If you haven’t done so already it’s definitely time to get things sorted ready for the deadline, it’s not to late!
Contact me to see how I can help – http://www.mjrbookkeeping.co.uk/contact.html
Hello there. Thanks for checking out my new website.
After much thought I have decided to start my own bookkeeping company. I have been growing my client base over the last couple of years but now it seems this could be something I could offer to many other sole traders and small companies who need an easy bookkeeping solution.
I work in an accounts office which services four large companies so it is easy for us to sort our own bookkeeping internally, but many sole traders or smaller companies do not require an internal accounts department as there isn’t enough of a workload or it is just not practical.
At Mark Robertshaw Bookkeeping we can offer companies like this a low cost solution without distracting them from the very thing which makes their company a success. After all, they may not be an expert in the accounts field.
So why not get in touch and talk to us about how we can help you. You can get in touch using the enquiry form or give us a call on 01635 595 659, we are always happy to help.