Yearly Archives: 2021

If you are an entrepreneur or a landlord who is still doing your own tax work, then you are probably dealing with more on your plate than you can handle. It might sound like you’re saving a lot of money by not hiring a tax advisor in London. But the truth is that in in the long run, your small business is at risk of significant losses because of tax mistakes. Chances are, you are also unable to focus on growing your company, because your time and attention is taken up by various accounting tasks.

 

It’s always more prudent and practical to let a professional tax advisor in London take over your accounting functions. With a professional tax advisor, you can be sure that you are fulfilling all your legal duties and taking advantage of tax exemptions. Having an accountant also lets you focus on growing your business.

 

Ready to search for your tax advisor in London? Make sure to consider these factors:

 

Qualifications

 

“Tax advisor” is a generic term for anyone with knowledge about tax laws, with or without professional certifications. So when searching or interviewing candidates, it’s crucial to ask for their certifications and academic backgrounds. Tax advisors in London have designations that describe their area of specialisations. For example, tax attorneys have a law degree, which means they can help you not only with basic tax laws but also when facing an issue such as tax fraud. Meanwhile, CPAs or certified public accountants are trained and qualified to do various tax-related and accounting activities.

 

Reputation

 

Your tax advisor will be accessing your confidential information about your business and yourself, so find a tax advisor in London with proven credibility. You want a tax advisor with an established reputation in the industry, someone who is trusted by current and previous clients.

 

Price structure

 

Experienced advisors generally charge more than younger advisors. No matter who you choose, make sure that the advisor can openly discuss their price structure with you. A reliable tax advisor should be able to explain the basis of their fees. The best ones also offer a fixed price structure that is easy to understand, ensuring that you don’t pay more than you should.

 

 

Hiring an accountant in London for small business may not be on your list of priorities right now, especially if your company is struggling to survive the economic downturn. But it’s even more important than ever. Think of it as an investment that deserves an allocation. An experienced accountant can save you a lot of money, and help your company stay viable through the market’s ups and downs.

 

So, how exactly can an accountant in London for small business protect you?

 

1. Start your business right.

 

Consulting with an accountant in London during the planning stages is beneficial. You will need your accountant’s expertise to be fully prepared when you open your business. You will get advice on the right business structure that suits your short-term and long-term goals.

 

2. Avoid accounting errors.

 

It’s easy to make mistakes when you’re handling every aspect of the business on your own. You will overlook details and forget to record all the important accounts and financial transaction. But a small business cannot afford accounting errors because they usually cost a lot of money. Avoid headaches by delegating your accounting tasks to an expert accountant in London for small business.

 

3. Get immediate assistance.

 

Whether you are just planning to start a business or have already started one, it’s normal to encounter hiccups along the way. There’s plenty of things to learn about taxes, managing your finances, and government requirements. Having an accountant who keeps abreast with the latest tax laws and trends in your industry is a huge advantage.

 

4. Ensure your business stays compliant with government regulations.

 

You never want to be on the wrong side of the law. Assigning a dedicated accountant to handle your accounts, record-keeping, payroll, taxes, and other tasks ensures that your small business will stay compliant with the regulations and requirements that apply to your industry.

Small accountancy firms in London exist to provide various accounting services needed by small businesses. Finding the right one for your company is crucial because you will be passing them important tasks and confidential informations. You need to make sure that the firm you are selecting is trustworthy, experienced, and has a good reputation in the industry. Here are some tips to guide you in evaluating the reliability of a small accountancy firm in London that you are thinking of working with:

 

 

1. Find out more about their qualifications.
   

Anyone can legally claim to be an ‘accountant’ in the country even without qualifications, training, and experience. But if you are going to pay someone to take care of your accounting tasks, you might as well pay someone who has an advanced educational degree in accounting and many years of professional experience. The best small accountancy firms in Londonare also members of professional bodies like the Institute of Chartered Accountants in England and Wales (ICAEW).

 

2. Look at the services they offer.

 

Every business has unique structure, issues, and goals. So before selecting a small accountancy firm in London, start by looking at your accounting needs. Find companies that provide specific services that will solve your accounting challenges that you are facing. For example, if you want to save on tax payments, then you must find a firm that specialises in tax work. If you are planning on expanding or investing, then choose a firm that offers financial advising.

 

3. Find out what sectors they specialise in.

 

A firm that understands your industry is more likely to anticipate your needs and create a sound accounting business plan. Their accountants will know how to handle business of your size and with your revenue.

 

4. Check if they have professional indemnity insurance.

 

Poor accounting advice can lead you to suffer huge losses. To protect your business against this scenario, make sure to hire an accounting firm with professional indemnity insurance coverage.

 

 

Is your financial paperwork piling up and almost overdue? It may be because you were too focused on running your business. It can be challenging for a small business owner like yourself to handle everything on your own, especially if you lack the manpower. However, rather than dedicating more resources for overhead costs, you might want to outsource to small business accountants in London to keep your financial records properly managed and up-to-date. That way, you can stop worrying about your accounting and bookkeeping and focus more on growing your business.

Proper record keeping is one of the factors that can lead to small business success. It may also contribute to maximising your profitability, enhancing your savings, and improving your cash flow. Small business accountants in London have the expertise and knowledge in those matters, so you can entrust the critical processes of accounting and bookkeeping to them. They also have the experience to work with any business in most industries, including retail, hospitality, leisure, technology, ecommerce, property, healthcare, medical, and construction.

To enhance your record-keeping, small business accounts may recommend using accounting software like Xero, Quickbooks, Kashflow, Sage, and Clearbooks. They can model your preferred platform to generate reports, which can serve as your reliable references for smart decision-making.

Outsourcing to small business accountants in London can also provide you with these benefits:

• Minimised bill of annual accounts – Ensure accurate figures on your year-end accounts.
• Accurate balances – Pay your suppliers according to what your cashflow permits.
• Improved credit approvals – You have solid proof of your financial status when working with lenders.
• Fraud prevention – Reliable control and reporting systems are in place.
• Fair and transparent pricing – Be more competitive in your industry.

Poor record-keeping can lead to financial ruin and a bad reputation in your industry. It can put your business at risk of being summoned for an HMRC enquiry when you are unable to provide accurate VAT payments or fulfil the tax responsibilities. You do not have to worry about those problems when you are backed by experienced and specialised small business accountants in London.

Bookkeeping is one of the most important tasks in a business. However, it can be challenging for a small business to keep up and ensure that it is up-to-date, especially when it lacks manpower and time to attend to it daily. For this reason, discerning small business owners turn to bookkeepers in London for assistance. They are professional accountants who understand your sector and your industry, and outsourcing to them makes sense if you want to save money without worrying about additional overhead costs. Basically, they can offload your bookkeeping responsibilities, so you have more time to focus on business activities and your company’s growth. Here are some of the ways they can help:

 

• Keep your accounts and books up-to-date and maintained – A well-maintained bookkeeping system is essential to the success of every small business. Professional bookkeepers in London will keep track of your purchases, sales, receipts, payments, and other relevant information and make sure that your books are accurate and up-to-date.

 

• Get reliable advice from experts – Experienced bookkeepers can support your business and help you make informed decisions that can impact its growth and success down the line. You can also turn to them for financial advice to discover ways to enhance your financial processes, identify your eligibility for tax credits, and get paid by your clients faster.

 

• Do better in business – Outsourcing your bookkeeping could improve the accuracy of VAT payments, reduce your chances at getting an HMRC enquiry, and ensure accurate balances of payables and receivables. Bookkeepers in London can provide reliable and accurate picture of your finances to lenders to improve your chance at getting approved. Moreover, they can guide you in avoiding fraud and in ensuring fair and transparent pricing every time.

 

• Access to technologies – Bookkeepers can also recommend reliable bookkeeping software that could help you manage your finances in the house, such as Xero, Kashflow, Quickbooks, Clearbooks, and Sage. They can customise those programs to suit your unique needs.

 

Remember that bad bookkeeping could negatively impact your business. So, even if you are running a small business, make it a point to keep your books in good shape with help from seasoned bookkeepers in London.

 

Regardless of the size of your business, it is bound to make some mistakes with its accounting and bookkeeping, which can ultimately affect your taxes and ability to grow your company down the line. Some mistakes may be too small that the HMRC may not seem to take notice at first, but over time, they could cause them to take legal action and require you to pay hefty penalties. You can avoid all these predicaments by consulting with seasoned tax advisors in London. Here are some of the matters that they can help you with:

 

• VAT errors – Underpaid or overpaid VAT for a maximum of four years due to mistake or negligence can be corrected. A tax advisor can bring your company’s VAT A/C back in order and identify those errors before the HMRC notices them. That way, you can avoid penalties on the amount of under-reported VAT.

 

• Paying too much tax – 75 percent of business owners are likely to overpay their taxes because of improper tax planning. Tax advisors in London can help reduce your taxes legally with strategies like making sure that your business is under the correct structure and ensuring that you are able to fairly and reasonably claim your business element of expenses.

 

• Missed deadlines – You could end up paying more in taxes due to penalties incurred when you miss paying on designated deadlines. A tax advisor will work closely with you to make sure that you do not miss a payment.

 

A tax advisor is a professional who can help you manage your accounting and bookkeeping, ensure accurate record-keeping, and minimise your chances of getting audited by the HMRC. They will also make sure that you are paying your taxes correctly while avoiding VAT mistakes. Some of the best tax advisors in London specialise in working closely with small and medium sized businesses, and they have extensive experience in an array of sectors, such as healthcare and medical, technology, ecommerce, media, and retail.

Regardless of the number of rental properties you own, being a landlord could mean having a lot of responsibilities to fulfil. In some cases, you might overlook your accounting, bookkeeping, and tax obligations until the last minute. You can avoid that hassle by hiring reputable accountants for landlords. With their help, you can focus on your core tasks and leave record-keeping to specialised accountants. They can also reduce your chances of getting noticed by the HMRC down the line.

 

Reduce your taxes on rental income

 

Accountants for landlords can find ways to legally reduce your expenses by looking into all the possible costs you may be incurring, such as travelling between your properties, stationery, and phone calls. You may not know it, but your deductible expenses could include maintenance and repairs, ground rent and service charges, accountants’ and letting agents’ fees, council tax, and interest element in mortgage payments.

 

If you own a property with a partner as joint tenants and an income gap exists between you, additional rental income may be allocated to the one with lower income to avoid a higher rate tax band. That way, a professional accountant can maximise the deduction of your expenses.

 

Stay up-to-date with tax laws

 

In 2015, the summer budget revealed significant changes on the tax structure of the rental income from properties that are buy-to-let. Accountants for landlords may suggest owning such a property by means of incorporation. That way, you still have a way to earn good returns on buy-to-let investments. They will advise you on tax-efficient means to own that property and suggest the best ownership structure for your situation, such as joint ownership as joint tenants, individual ownership, SIPP, LLP, and limited company.

 

Get to know LESA

 

Accountants for landlords can assist you in claims related to the Landlord’s Energy Saving Allowance. That way, you could claim against the money you are spending on energy efficiency measures, such as insulation for the solid wall, cavity wall, loft, flooring, and hot water system, and draught-proofing.