PAYE&NIC » Happy Accountant: Accounting Blog & Online Accountant

Choosing Bookkeeping/Accounts Software
* Choosing bookkeeping or accounting software for your business or organisation is a big step. There is so much available on the market, with new vendors and products coming out all the time. So, how do you decide which is the best for you? How much you are prepared to pay? There is such range of [read more]
The Consequences of Being Inside IR35
*The financial consequences of being inside IR35 are mainly (there are other consequences) you lose the tax-avoidance facility of dividends. Essentially, if you are within IR35, you must calculate a “deemed payment” and pay NICs and PAYE (tax) on that deemed payment. The tax-deductible amounts that you can claim in travel and expenses will also [read more]
When to Register as an Employer
*As soon as you take anyone on where any of the following conditions apply, you need to register with HMRC as an employee. the employee already has another job the employee receives a pension (state or occupational) the employee will earn at or over the PAYE (tax) threshold the employee will earn at or over [read more]
SAGE VAT codes
*Sage uses the following codes for VAT: T0 – zero rate VAT T1 – standard rate VAT T2 – exempt (eg. stamps, insurance, aire fares, bank charges, financial services T4 – EC Sales T5 – lower rate VAT (eg. electricity, gas, women’s sanitary products) T9 – not involving VAT/outside scope of VAT (eg. suppliers that [read more]
Registering for VAT and Keeping VAT records
*You must register for VAT with HMRC. This can be done using a paper form or online. Once registered, you generally have to keep reocrds of: the VAT you charge on your sales (output VAT) the VAT you have paid on your purchases (input VAT) the total amount of sales excluding VAT the total amount [read more]
Using Excel for Accounts and Bookkeeping
*The great thing about MS Excel (and others say it’s greatest downfall) is that it is so adaptable and because it normally comes bundled with the PC you bought for your business, it’s cheaper than buying accounting software. For start ups and possibly for the sole trader or small limited company, it’s a very easy way of keeping track [read more]
Why have an Accountant?
*Because… Doing the accounts takes you away from your real business An accountant could do the job quicker and more accurately An accountant could save you money in the form of tax-savings as well as sometimes finding other areas for savings and efficiencies. Professionally produced year end accounts will be taken more seriously by banks and [read more]
What is the Difference between Bookkeeping and Accounting?
*The two really overlap: Bookkeeping is part of accounting. It is the recording of the day to day transactions of a business – either in “manual” books, or on computer software or spreadsheets. Therefore, bookkeeping can play an important role in the efficient running of a business: Purchase Ledger – A business needs to pay [read more]
Simple Bookkeeping
*You need three basic “books” (or ledgers): – a cashbook to record all cash/cheques/bank transfers going in and out of your business – a purchase ledger, to record details of all the purchases that you make – a sales ledger to record details of all the sales that you make (if you are a retail outlet, [read more]
Advantages of a limited company
*Obviously, the main attraction of forming a limited company is the “limited liability” of its owners, the shareholders, as it protects the personal assets of the owners. Should the company fail, the company is liable without limit for its own debts, but its shareholders’ liability is limited to the amount oustanding (if any) on their [read more]
What do you need to set up a company
*Essentially, before you begin, you need: a company name, which can be almost any name that has not previously been registered. a Director a Company Secretary (which cannot be the sole director) (or you could have two directors, one of whom could also act as Company Secretary) a shareholder (which can be either the director [read more]
Choosing Your Accountant
* Speak to your prospective accountant on the phone first and then, if you are still happy, set up an initial meeting – which should be free of charge. Ensure that they are professionally qualified and are current members of a professional body (Chartered Accountant (ICAEW/ICAS/ICAI), Chartered Management Accountant (CIMA), Chartered Certified Accountant (ACCA) for [read more]

P35 Penalties 2011 07/10/2011 P35 Penalties 2011 Posted by Happy Accountant at 9:00 am No Responses PAYE&NIC *HMRC have recently issued many employers with £400 penalties for not filing their P35 return for 2010-11. You only have 30 days to appeal the penalty, if you disagree with the penalty. Some of the penalty notices have gone, in error, to employers who have already filed a P35. If you have already filed a return for [read more] Full Article	Choosing an Umbrella Company 23/06/2011 Choosing an Umbrella Company Posted by Happy Accountant at 9:00 am No Responses Limited Company, PAYE&NIC *Some things to think about when choosing an Umbrella company: The speed with which they will process your PAYE and expenses and their timescales/deadlines. How fast will you be paid once the Umbrella company receives payment from the recuitment agency. This will also depend on how fast they send an invoice to the agency. How easy [read more] Full Article
Emergency Tax Codes 05/06/2008 Emergency Tax Codes Posted by Happy Accountant at 9:00 am No Responses PAYE&NIC *Occasionally, a new employee will start without a P45. An Employer must then use an emergency tax code. The emergency tax code is currently: 543L, although, from 7 September 2008 it will be 603L. Using this code usually means that the employee gets their basic personal allowance, but does not take into account any other [read more] Full Article	Other Tax Codes 04/06/2008 Other Tax Codes Posted by Happy Accountant at 9:00 am No Responses PAYE&NIC *Sometimes a tax code may have two letters and no numbers or be another combination: BR Code This code is commonly used where it is an employee’s second job and the all their personal allowances are used in the first/main job. All income earned under a BR tax code will be taxed at basic rate. D0 [read more] Full Article
Common Tax Codes 03/06/2008 Common Tax Codes Posted by Happy Accountant at 9:00 am No Responses PAYE&NIC *L Codes Used for employees who are eligible for the basic personal tax allowance and also as an “emergency tax code”. This is the usual code for employee’s main (or only) job with straightforward tax affairs. P Codes Used for people aged 65-74 who are eligible for the full Personal Allowance. V Codes Used for people [read more] Full Article	What is a Tax Code 02/06/2008 What is a Tax Code Posted by Happy Accountant at 9:00 am No Responses PAYE&NIC A tax code is the short alphanumeric (eg. 543L) code that an employer uses to work out the correct tax to deduct from an employee’s gross pay. Full Article
What is IR35 07/04/2008 What is IR35 Posted by Happy Accountant at 9:00 am No Responses Corporation Tax, Limited Company, PAYE&NIC, Personal Tax, Tax *IR35 was first propsed in 1999 and was introduced into UK legislation in 2000. The primary aim has been to prevent the avoidance of tax and national insurance by trading through an intermediary (commonly a limited company) rather than being an employee. Prior to IR35, individuals could form a limited company and invoice their “client”/”employer” [read more] Full Article