Some of the services that will be provided under the Acute Bizz Ltd will be:
• General Accounting and Bookkeeping Services
• Business Bank Reconciliations
• Accounts Payable
• Accounts Receivable
• Preparation of Financial Statements upto the trail balance
• Billing for goods sold or services provided to clients
• Recording receipts from customers
• Verifying and recording invoices received from suppliers
• Paying suppliers
• Monitoring individual accounts receivable
• Recording depreciation and other adjusting entries
• Managing self-employed accounts and assisting with self-employed registrations.
• Preparing VAT calculations
• Designing and providing research based solutions.
We provide all quotes based on invidual assignments. All fees will be agreed up front before any work takes place. Please contact us for the quote.
We have tried to explain below for the better understanding of the user.
(a) Limited companies
What is it and how it operates ?
A limited company is an independent and separate legal entity that can own assets in its own right and is responsible for its liabilities and expenses. In a limited company business structure even if you own 100% of the share capital your finances are completely separate from the company. Any liabilities arising from the business that the company cannot meet, will not warrant sale of your personal assets of the shareholder.
If you want to run your business or start contracting under limited company structure you will be the director and sole shareholder of the company. The company can than pay you a annual salary or dividends or both. As a director you will be an employee of the company therefore both the company and you have to pay tax and NI on your salary.
The advantages of limited company business structure are;
1- it is generally accepted throughout the accounting and tax sector that it is the most tax efficient way to run a business or contracting. It is
estimated that your take home money is around 80% of the profit.
2- low personal financial risk as explained above your personal assets are safe when your company is struggling to meet it’s liabilities.
3- wider tax planning opportunity through schemes like flat rate VAT.
4- you will be able to claim a wider range of expenses as long as they meet the ‘wholly and exclusively for business’ criteria.
5- limited company gives your business a professional appearance so it attracts more business.
The disadvantages of limited company business structure are;
1- Accountancy fee is higher as limited company involves more paperwork, accounting procedures are complex for producing limited company
accounts and you have to satisfy HMRC along with companies house with up to date information.
2- your details will be published on companies house website as a director.This means you will have less privacy
3- more administrative responsibilities with regard to record keeping e.g maintaining an asset register which is not required under other business
structures such as sole trader.
(b) umbrella companies
What is it and how it operates?
An umbrella company is basically an agent between you and your clients.It acts as your employer to collect payment from your clients and then
pay you a salary after deducting their commission tax and national Insurance.
If you want to operate through an umbrella company as a contractor you Will have to submit a time sheet and details of all work related expenses
Advantages of umbrella company
1- it easy and simple use. The umbrella company takes responsibility of all the paperwork, tax and accounting matters.
2- once you receive your salary there will be no further deductions.
3- it provides a platform for people who want to try out contracting but are not ready to take responsibility of running a limited company.
The disadvantages of umbrella company
1- less control compared to running your own limited company.
2- reduced take home money as paying commission on top of tax and NI.
3- fewer tax planning options.
Self Assessment Tax Return
Who needs to file a tax return?
Anyone who works for themselves may it be a sole trader, contractor or a freelancer will need to submit a tax return at the end of every tax year.
It is a difficult task for majority of self employed people simply because They fear making a error or don’t know what to include in it.
This is where Acute Bizz comes in and take all the responsibility to correctly calculate and submit your tax return within HMRC deadlines so you won’t pay more Tax than you should or pay a late filing penalty.
Why file a tax return?
Filing a tax return is very important because this is how HMRC works out Exactly how much you have earned through yourself employment and
how much value you have gained on your personal assets in a tax year.Based on those earnings your income tax, national Insurance
contributions, Inheritance tax and capital gains tax are calculated and than paid to HMRC.
If you don’t submit a tax return HMRC can put you on emergency Tax code which means you will be charged a higher tax rate and you will
end Up paying more tax than you should, had you declared your income and gains properly through filing a tax return.
Do I need to complete a tax return?
If you are employee on of an organisation and your tax and NI is deducted at source then you don’t need to file a tax return. However, if
you work for yourself such as sole trader or online seller in addition to working as an employee of an organisation then you do need to submit a
A tax year runs from 05th of April to 06th of April every year. The deadline to submit a tax return is nine months after the end of the tax year that is 31st of January every year. So, for tax year 01/04/2016 to 31/03/17 last date of filing a return will be 31st January 2018.
If you are a contractor looking for expert advice on how to increase your Take home money than you have come to the right place. Contractors can
basically, submit a self assessment tax return, setup a limited company or Use the services of an umbrella company.
Each of the above options has its own pros and cons however the choice usually boils down to limited company vs umbrella company. If we rank all
Three options based on take home pay, setting up your own limited company comes at the top with more take home money. Umbrella company comes second followed by self assessment tax return.
For more details on limited company and umbrella company please visit our limited company and umbrella company sections.
Acute Bizz has trained and qualified staff who specialise in contractor accounting. Under the UK tax law, we will make sure that you reap more
financial rewards for your hard work.
Payroll is the most complex time-consuming accounting process that requires specialist knowledge about every aspect income tax, national
insurance, statutory holiday pay, statutory sick pay, statutory maternity pay, statutory paternity pay, joiners P46, leavers P45, year-end P60 and
There is an enormous amount of compliance issues to consider too such as employers are required to check ‘right to work’ with the home office
as failure to do that results in massive penalties to the tune of tens of thousands of pounds.
It is not financially feasible for majority of SME’s to setup an in-house payroll department. The amount of knowledge it requires and the time it consumes makes it almost impossible for business owners to do it themselves. On top of that the UK government has introduced real-time payroll so it has to be submitted to HMRC every month.
In the light of information provided above it makes commercial sense to Hire a professional firm to outsource your payroll. Acute Bizz has the expertise, experience and resources to provide your business an exceptional payroll service at a very competitive price.