Q: Why Should I use Asmat& Co?
Ans: Dedicated and Professionally qualified team of Accountants with vast experience in practice.
How easy is it to switch to Asmat& Co?
Switching to us is easy and without any disruption. On client’s instruction we get Professional Clearance from previous Accountant.
Q: What kind of support will I get with my accounting?
Ans: Asmat& Co team members are qualified accountants with Membership from ACCA (Chartered Certified Accountants); ACMA (Chartered Management Accountants) and Members belonging to IFA and AAT Institutes.
Matters relating to any trade or profession can be dealt with convenience.
How quickly can I be up and running?
Immediately on signing with us we will issue you Engagement Letter detailing our Terms of Conditions with Fees agreed and will request for all the necessary documents to be provided.
Q: How much advice is included in my monthly fee?
Ans: Asmat & Co endeavour to assist their clients in all matters relating to accounts and taxation and this covered by monthly fee charged.
Q: What level of accounting expertise does Asmat& Co have?
Ans: Asmat& Co are in public practice since 2009 and have wide variety of clientele. The professional team consists of 2 ACCA members, 2 CIMA members, 1 IFA and 2 AAT.
Q: Does Asmat& Co do Book keeping?
Q: Does Asmat& Co have a minimum term of contract?
Q: Can I sign up online, due to my working hours?
Q: What are my responsibilities?
Ans: In order to meet deadlines and to keep your records within the requirements of HMRC rules we at Asmat & Co take responsibility to inform clients for all required paperwork. Any deadline to do with Companies house, HMRC payroll, VAT or directors own self assessment will be reminded by our software and communicated to client in time.
Our systems allow ample time for clients to make payments and also relieve time to concentrate on business as Accounts preparation and submissions will be responsibility of Asmat & Co.
Q: Do you do Self Assessments?
Ans: Yes – Asmat& Co provides personal tax calculation and filing service at a reasonable price based on the quantity of work and sector client works in.
We also register clients and act Agents for all communication on our client’s behalf with HMRC.
Q: What has to be entered in the Self Assessment Tax return?
Ans: All forms of Directors income from investments, savings or any other form of business income has to be
entered on the Self Assessment Tax Return. For contractors they are to declare their PAYE figures and
the dividends they award themselves. All Self Assessments are to be filed with HMRC no later than the
31 January (each calendar year). Payments are carried out in two installments i.e. end of January and July
Starting in the tax year.
Q: What is income tax?
Ans: Every earning individual pays tax based upon their earnings including the benefit in tax years. Income tax normally comes from earnings as an employee and is paid to you after persona tax has been deducted.
Q: Do you do payroll?
Ans: Yes, we do payroll. At Asmat & Co the payroll is fully RTI compliant and takes care of National Insurance and Tax and is well managed by our software.
We provide payroll for two company directors within the agreed price, though with 5 or more employees we have set packages which can be discussed with your Accountant at Asmat& Co.
Q: What is the tax on dividends?
Ans: Dividends paid from company are deemed to be paid net of 10% tax, for example your take £10,000 your tax return will show you received £11,000 even though in reality you have not paid anything you just retained the benefit of the credit.
Dividends are taxed at 10% up to the higher
Q: What is surplus cash?
Ans: Surplus cash is remaining cash balance after your business expenses, salary, corporation tax and declared dividends are deducted from your company income. The cash balance in the bank is not always the same as your cash balance as some invoices for the business expense or taxes that are still to be paid are to be accounted for.
To look for the surplus cash look at your last year –end Balance sheet. For clarity speak to your Accountant at Asmat & Co.
Q: When do I need to register for VAT?
Ans: VAT registration is mandatory for companies who have made taxable sales in the last 12 months above the current threshold amount which is issued by HMRC every year on the 6th April. For example 2014/15 threshold is £81,000, though generally HMRC increases the threshold by around £1,000 each year. You are entitled to voluntarily register your company for VAT even though your sales are unlikely to reach the threshold.
Companies and contractors may choose to do this as it can offer several advantages in claiming back VAT on invoices they receive. If you expect you are likely to exceed the threshold in the near future you should register as soon as possible in order to remain within the HMRC rules.
Businesses can register on voluntary basis even though they not reached the threshold level. Some businesses can register for FLAT RATE VAT schemes for e.g. Contractors as this can be beneficial for them monetarily.
Q: Can you help with VAT registrations?
Ans: Yes one of the Accountants as Asmat & Co can do this on your behalf.
Q: Do you file VAT returns?
Ans: Yes we file Monthly, Quarterly and Annual VAT returns depending on the size of the company and type VAT scheme chosen.
Q: How is an IR35 case decided?
Ans: They are number of ways to show this works, for example in case of a plumber. If you ask plumber to come and install a tap and you agree with him what the end result will be but it’s entirely up to him he does it and you don’t tell him how to fix it.
He is subject to certain guidelines given by you as to what and where you want the tap to be installed and he may need to work within certain reasonable hours as you wouldn’t want him to be coming over in the middle of the night to install it, though you don’t control how he does and what he does.
He can get his employee or partner to come and finish the job, which is fine by you as long as the job is done as desired. Once the job is done he has no expectation that you are going to find him something else to do, and he may also turn down further work if you do offer it, and you have no responsibility to find him anything to do. If he does a job which is not completed as agreed than you may ask him to correct it free of charge and take no legal action and for disputes he may surely have insurance in place for just that reason. You may delay paying him or refuse to pay until he provides an invoice.
Simply you may tell an employee how, when and what to do when he turns up at work. They cannot send a replacement person. An employee will expect you find another job once they finish old task.
Employees have performance reviews, sick pay, holiday pay and potentially pension or bonus schemes. Employees are very much part and parcel of the company and are representing the company if they make a mistake they will correct in the employers time.
This is how IR35 cases are decided and this is how HMRC will look where you fit in between those two examples. If you are an employee than you are required to pay Tax and NI on what you should have taken as wages.
Q: How will I know if my contract is within IR35?
Ans: IR35 is wide subject which depends on a number of factors, and is not just a written contract itself but also a theoretical contract that exists between you and the end of client. It is not possible to avoid IR35 purely by having a written contract, as it could be dismissed if it’s not realistic.
Specialist Accountant such as Asmat& Co will guide and assist after each individuals situation whether they fall within IR35 or not and if so what factors are to be considered. A more detailed explanation on Personal service, Control and Mutual Obligation.
One to One appointment is at hand for you to understand and ask as many questions that you may have.
Q: How can I claim my Christmas Party expenses?
Ans: Christmas party allowable expenses are £150 per employee and similar allowance is available for each employee partner.
Q: What business expenses can you claim for?
Ans: Company can claim from a long list of expenses, but ensuring the expenses are wholly and exclusively and necessarily for the purposes of business in order to qualify as an allowable expense.
Any expense that has a personal benefit or can be seen to have dual purpose will often result in a benefit in kind charge.
A general list has been outlined though should not be taken as a definite and no responsibility is accepted for the eventual tax status of any claim
-Contributions to employee private pension plan
-Up to £55 a week toward registered childcare- but be careful as this could affect any tax credit claims
-Business stationery and postage costs
-Subscriptions to professional bodies
– Training costs incurred to upgrade current skills
-Use of Home
– Mileage, Travel & Subsistence
-Mobile phone bill if the contract is in the company name- if not, only identifiable business calls
-Broadband connection if private use is not significant than claim full amount
-Computer, if your work requires one
-An eye test charge only claimable only if you use a computer screen.
-Entertaining employees- £150 per head is allowable for an annual event such as Christmas party
-Company bank charges and interest
Q: What can you claim for when using your home as an office?
Ans: A Basic claim is allowed for general administrative tasks and do not have a specific room set aside for business use, for that you are allowed to claim an approved rate of £4 from HMRC. Also you are not asked to keep any records to back up your claim and any such claim is unlikely to be challenged by HMRC.
If you work from home, and have a separate room assigned for the company work purposes, you could claim based upon the space used and the actual bills incurred. You are required to show logical calculations and keep all related invoices to the claim for the standard 7 years.
The below headings can be used to calculate the total cost:
– Internet line rental
-Telephone line rental and call costs
– Light & heating costs
For further clarity discuss with your Accountant at Asmat & Co.
Q: What is considered a reasonable mileage claim?
Ans: According to the guidance issued by HMRC, the maximum reasonable rate of reimbursements as a consequence any rate used to reimburse employees, is lower than or equal to.
If it’s a company car and the employee pays for all the fuel, the claim will be for the business mileage and should not include any other costs.
For HMRC advisory fuel rates follow the link below:
Q: What mileage can I Claim?
Ans: Employers are entitled to reimburse any business related amount to employees if they have paid for it personally. Provided the claim is not unreasonably high and reimbursement is not taxable in the hands of the employee.
These reimbursed costs are deductible as expenses in the company which reduce the company’s tax liability.
Q: What is a ‘Benefit in Kind’?
Ans: As a contractor a director or an employee of a company it is important to differentiate between personal and business expense, many of which are paid for by the company, though if the company is paying for the private expense they will be treated as benefit in kind.
‘Benefit in Kind’ – is the value of any extra benefits an employee enjoys as an employee by virtue of their employment. A few examples are such as medical insurance, company car, clothing, computer equipment such as laptops and No or low interest loans.
All benefit in kind amounts are reported to HMRC in the form P11D each year, with extra employer’s national insurance also being due. There may be extra tax due which will be disclosed in the individual employees self assessment tax return.