Preparing accounts and tax returns from shoeboxes of receipts or email/CD/hard copies of our accounting systems.

Preparing quarterly VAT returns from paperwork supplied.

Inland Revenue investigations or back duty claims.

Help with Tax Credit Forms.

References

Help with Inland Revenue registration forms.

GETTING STARTED

It’s tempting to leave accounting alone at the start, but this would be a big mistake and you could easily miss out on an early tax refund.

There are 3 initial steps to take:

First register with the Inland Revenue as self-employed, and if working in a partnership, each must register. Forms CWF1 and CF10 must be completed.

Second start your first accounting system which simply means finding a shoebox! Begin to fill this with all business bills and receipts.

Thirdly open up a separate bank account just to be used for the business. This makes life a lot simpler and means you can claim charges and interest in full. At the same time keep a credit card only for business.

For just £10 buy the DSL’s “Accounting Starter Kit” which is your essential pack of tax and accounting information. This includes those registration forms, a booklet endorsed by the DSA giving loads of information and a Q & A audio CD. Read and listen and you’ll be so much better prepared!

Maximise legitimate expenses to maximise your first tax refund – ask us at DSL how this works and in particular how working as a partnership can really boost the amount.

BUSINESS BUILDING

Continue to keep all business related bills and receipts, bank and credit card statements and home utility charges.

Maintain a shoebox or consider DSL’s easy to use accounting software. 2 systems are available, Excel based or an exclusive stand-alone version. Both cost £79.50, a one off cost which reduces annual accounting fees by £100. Excellent value for money!

Keep an eye on turnover – commission plus personal (not group) sales – for currently at £67000 during any 12-month period you must register for VAT. Monthly turnover on a regular basis in excess of £4000 should remind you to monitor this carefully and be alert for those special annual bonuses!

TOP LEVELS

This is when serious tax planning should be considered…. contact us at DSL without delay!

As soon as higher tax rates come into effect either as a sole trader or by way of a partnership share, consider moving the business into a Limited Company.

Form a Limited Company well before it is required, both to secure a chosen trading name and to make the company instantly available for accounting purposes.

Talk to DSL about tax relief on downline group incentive ideas – plan ahead, don’t regret with hindsight!