Bookkeeping Archives

Setting Up for Making Tax Digital

February 22, 2024/in Accountancy, Bookkeeping, Making Tax Digital, Tax returns, VAT/by Taxfile

by Sue at Taxfile.

Whether you’re new to self-employment and have just started to run your own business, or have been doing it for a while – the fact is: Making Tax Digital (‘MTD’) is coming and it would be best to get set up in the right way, now.

Record-Keeping for Making Tax Digital

Keeping your personal life & your business completely separate is the best policy. It keeps things streamlined and will also save you money when your tax agent comes to do your bookkeeping & tax returns. So:

Set up a separate bank account just for your business;
Pay for your expenses from this account;
Pay income from your sales into it;
Keep an ongoing file for each tax year, where you put all your expenses, receipts & invoices;
Include copies of your sales invoices in that file too;
Keep the file in monthly order, so that accountants/tax advisors like Taxfile can easily cross-check the invoices to the bank statements and analyse your costs accurately.

Setting Up Digitally

Making Tax Digital means that you must run your business through a digital traceable source. The best way to do this is to allow us, if we are your tax agent/accountant, to set up your bank statements to feed automatically into accounting software like ‘Xero’. Alternatively, we can accept bank statements downloaded in CSV format, which we would then transfer to Excel spreadsheets.

Cash & Card Sales

If you are making cash & card sales, set up an app on your smartphone like ‘Sum Up’ or ‘Square’ so that you will be complying with MTD – your bank can also supply you with a PDQ card reader to accept your cash/card sales. We can upload your sales reports from these services and include them in your sales figures.

Accurate record-keeping is the cornerstone of every successful business

Moving to Quarterly Reporting

Here at Taxfile, we can currently run your bookkeeping for you quarterly or annually. However, when HMRC implement MTD fully in 2026, tax returns will need to be submitted each quarter — no longer just once a year. We’re therefore recommending that everyone gets used to sending in their bookkeeping records quarterly.

Quarterly bookkeeping also allows us to monitor your sales turnover and alert you at the appropriate time if you are approaching the level of sales that would require you to get registered for VAT. Finding out at the end of the year that you have already gone over the threshold — and should have been charging VAT at an earlier date — can be very costly.

Contact Taxfile – for All Your Tax & Accounting Needs

We’re Tax Advisors & Accountants in Tulse Hill, Dulwich, South London & the South West

Come and chat with one of our friendly team in the Tulse Hill office about getting things set up & ready in good time. Or call for a telephone appointment to discuss what will be best suited to your particular business operations.

Whether you are a sole trader with no staff or subcontractors for a larger concern, we are here to help every size of business get set up on the right path — for getting MTD-ready.

020 8761 8000 Book Appointment Contact Us

Taxfile is a tax advisor and accountant with offices in Tulse Hill, and Dulwich in South London, and Devon & Cornwall in the South West of England.

Understanding Basis Period Reform for Self-Assessment Tax in the UK

December 21, 2023/in 2023, 2023-24, 2024, Accountancy, Accountants, Basis Period, Bookkeeping, Making Tax Digital, MTD, Partnership, Self-assessment, Self-employed, Sole traders, Tax, Tax accountants, Tax calculation/by Taxfile

Are you a sole trader or in a partnership?

Do you have different accounting dates from the standard 6th of April to the 5th of Apri?

If you answered YES to both questions, some IMPORTANT changes will apply for the tax year 2023-24.

The concept of the basis period determines the time frame used to calculate taxable profits or losses for self-employed individuals, partnerships, and some trusts. It marks a departure from the traditional “current year” basis, where business profits were taxed based on the accounting period ending within the tax year. Instead, it introduces a “tax year” basis, aligning taxable profits with the UK’s standard tax year, running from 6 April to 5 April. Read more

Harnessing Technology at Taxfile

July 8, 2021/in 2021, Accountancy, Accountants, Accounts, Bookkeeping, Buy to let, Cab drivers, Capital gains tax, CGT, CIS, Construction Industry Scheme, Devon, Dulwich, Furnished Holiday Lettings, IHT, Income tax, Landlords, Lettings, Lettings income, Limited companies, Limited company, London, Partnership, Self-employed, Sole traders, South London, South West, Tax, Tax accountants, Tax advice, Tax advisers, Tax refunds, Tax returns, Tulse Hill, VAT/by Taxfile

The rapid pace of technological change has caused some of the biggest shifts in how we view and process our tax returns. At Taxfile, we’re constantly striving to use technology as effectively as possible to aid us in collecting, analysing, and collaborating when working on your personal data.

Over the pandemic, we’ve had to place our reliance even further on technology to maintain our standards, with regular meetings online. We’re constantly improving the efficiency of our work pipeline and, with the ability to pull figures directly from online bank statements, we can ensure precision in the numbers we present you with. For the last two years, we’ve implemented cloud technology as both a collaborative tool between our senior and junior staff and as storage for various databases used to track everything from employee working hours to the status of your tax return. We’re expanding further on this concept in collaboration with Pure Technology by merging our existing cloud systems with our current remote work solution to form one, all-encompassing workspace environment. Hosting it in the Microsoft Cloud ensures that, with the help of our office staff, your paperwork and bookings can be sent to and viewed by your tax agent as soon as possible. This and a variety of other endeavours are examples of our ambitions to be at the forefront of innovations, and constant review of our policies ensures we remain ahead, or on track, to meet the standards set by Making Tax Digital (MTD) for its 2023 launch.

Contact South London’s Favourite Accountant

Taxfile can help you with all your tax or accountancy requirements. We offer Read more

PAYE, 2021/22 Tax Thresholds, Employment Allowance & P800s

June 8, 2021/in 2021, 2022, Accountancy, Accountants, Accounts, Bookkeeping, Devon, Dulwich, Employment allowance, FreeAgent, Higher rate tax payers, Income tax, Limited companies, London, NI, NIC, NIC's, P800, Pay-as-you-earn, PAYE, Payroll, Personal allowance, Sage, Software packages, South London, South West, Tax, Tax accountants, Tax advice, Tax advisers, Tax bands, tax rebates, Tax refunds, Taxfile, Tulse Hill, VAT, Xero/by Taxfile

My name is Daniel and I have been a part of the Taxfile family since 2007. It started as a part-time job doing bookkeeping, but as time went on, I developed new abilities and a deeper understanding of the tax world. PAYE, VAT, and Company Register are now my areas of expertise.

I understand how complicated the tax world is, so here are a few PAYE things to consider:

Understanding the tax thresholds for 2021-2022

PAYE is calculated based on how much you earn and whether you are eligible for the personal allowance.

Standard Rate: PAYE income tax is charged at 20%, less a personal allowance of £12,570, this is signified by tax code 1257L.
Higher Rate: For most, income over £50,270 to £150,000 is charged at 40%.
Additional Rate: Income above £150,000 is charged at 45%.

What is the Employment Allowance?

The Employment Allowance allows certain businesses that employ workers to reduce their annual National Insurance (NI) bill by up to £4,000 (for the 2021/22 tax year).
Eligible businesses can claim a reduction against their employer’s Class 1 NI liability up to a maximum of £4,000 each tax year. You can still claim the allowance if the liability was less than £4,000 in a tax year.

You can’t claim if you’re a company with only one employee paid above the Class 1 National Insurance Secondary Threshold (£8,840 for the 2021/22 tax year, up from £8,788 for the 2020/21 tax year) if that employee is also a director of the company.

How will I know if I haven’t paid the right amount of PAYE?

HMRC will send out a P800 tax calculation form after the tax year ends on 5 April, which you should receive by the end of November. This will show how much tax is due to be refunded, or is owed for previous years.

Another significant aspect of Taxfile is that it works with a wide range of accounts software (Sage, QuickBooks, Xero, FreeAgent, VT, Forbes, Moneysoft, and so on) and can accommodate everyone. These are just a few examples, but if you need assistance with any area of PAYE, VAT, or other types of tax, Taxfile and the team are here to help. Call Taxfile on 020 8761 8000, book a free appointment (in-person and phone or video call options are available) or simply message us your tax-related query and we’ll be happy to help. We are accountants and tax experts in South London and the South West.

This post was brought to you by Daniel at Taxfile.

Peace of Mind from Using an Experienced Tax Team

June 3, 2021/in 2021, Accountancy, Accountants, Accounts, Advice, Bookkeeping, HMRC, Income tax, London, Self-assessment, SME, Sole traders, South London, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, tax experts, Tax return, Tax returns, Taxes, Taxfile, Tulse Hill/by Taxfile

When using Taxfile, you are using an experienced team that will make dealing with your tax affairs seamless. A lot of clients start by coming into our office stressed and overwhelmed, not knowing where to start. Using your current position and needs, we plan a step-by-step approach to keep you on top of your affairs and the relationship between you and HMRC harmonious. Once you are officially on board with us, we will have access to your HMRC record and, with our dedicated agent lines to HMRC, we’ll be able to speak to them on your behalf. This way, you are free from having to call them yourself and wait longer than we do for a call handler. You can also have any issues or queries explained to you in an easy to understand way by our friendly team. If you receive any letters that from HMRC and you don’t understand anything, we will be able to take a look for you and explain what it’s all about.

Any fee you pay Taxfile is tax deductible, so will be put on your tax return and result in a reduction of tax.

Our up-to-date knowledge of the tax system will give you peace of mind, alleviate any anxiety you may have and make the whole experience very different to how a lot of people find it when they are not using a team like ours. We know the best way to approach a tax situation that, without our experience and knowledge, could otherwise result in a lot more time and money being spent unnecessarily. From something as small as missing a tax return deadline, it can spiral into something a lot bigger, potentially including penalties, late payment interest, debt collection agencies being involved and so on. We inform all our clients of upcoming deadlines, for their particular tax situation, and let them know what needs doing and when, avoiding this situation and many more.

Unlike a lot of other companies, our tax experts and accountants are approachable, accessible and happy to help. We’re a unique tax advisor and accountancy practice like no other, with offices in Tulse Hill, Dulwich and Devon. We can help with any tax-related issues, including bookkeeping, filling in a tax return, limited company accounts, help accounting for property lettings, tax refunds and anything accountancy-related. Call Taxfile on 020 8761 8000, book a free 20-minute appointment with us (remote or in-person options available) or simply email us your tax-related query here.

This post was brought to you by Julie at Taxfile.

How To Help Your Accountant Save You Money

October 23, 2020/in 2020, Accountants, Bookkeeping, Corporation tax, Income & Expenditure, Limited companies, Limited company, P11D, Software packages, Tax, Tax accountant, Tax accountants, Tax calculation, Taxfile, VAT, Xero/by Taxfile

There are many benefits of helping your accountant by providing complete and organised records from the outset.

Here are some of them:

If you get your records to your accountant on time, you will give them enough time to work on your case without unnecessary pressure and file everything on time (don’t forget you are not their only client).
By providing organised and detailed records, you’ll understand your business performance better and it will save them time from processing and reorganising untidy paperwork.
By providing complete records of your business expenses, they can claim what is allowable and potentially reduce your tax bill.

When preparing your financial records you need to remember:

Separate your business from your personal finances.
Stay on top of your records and ensure they are orderly with no gaps in the dates.
Keep receipts and purchase invoices; you will need to provide proof of all expenditure and year-end creditors.
Bring bank statements for the complete period and downloads of your bank feed in .csv format if possible.
Sequential invoices for each sale, dated, to prove year-end debtors and accrued income.
Depending on your business, you may also need to keep records for things such as payroll, cash books, stock takes, travel and credit card statements.

In an ideal world:

It is much better to keep on top of these things monthly than leaving it until the end of the year, where you may have lost or forgotten data around expenses, sales, or other financial details.
You would have a software package to help you track your bank, expenses, and sales.

At Taxfile we provide the full spectrum of accountancy-related services; integrating your business with accounting software like Xero, oversee your bookkeeping, run VAT returns and payroll, to filing your year-end accounts, corporation tax return & director(s) tax return(s).

Call us on 0208 761 8000 if you would like to streamline your businesses finances and alleviate some pressures from your financial duties as a director. Alternatively, book an appointment with us here or drop us a message here — we’d be delighted to hear from you.

Need a Limited Company? Questions you may be asking yourself

October 20, 2020/in 2020, Accountancy, Accountants, Accounts, Book keeping, Bookkeeping, Capital assets, Corporation tax, Dividends, HMRC, Income & Expenditure, Limited companies, Limited company, P11D, PAYE, Payroll, Tax, Tax calculation, Value Added Tax, VAT/by Taxfile

“What are the main differences between being self-employed and running a limited company?”

“What are the advantages and disadvantages of having a private limited company?”

The major difference between running a private limited company and being self-employed are the administrative requirements you are required to do by law & although the volume is more, the data contained within those returns are pretty similar to being a sole trader.

A limited company will:

need to keep company records
report any changes to Companies House & HMRC
need to file an annual company tax return along with the company’s accounts, giving an undistorted view of its finances.

So why go through the extra cost and resources of having a Limited Company?

In forming a limited company, you are limiting your personal liability. What this means is that the Limited Company becomes a legal entity of its own. Think of it as another being, that you work for. However, it is important to keep in mind that you cannot abuse your power with the limited liability, to take selfish and unnecessary risks. As a director, you are ethically and morally responsible for the business decisions and transactions the company makes.

As a director of a private limited company you will:

make decisions that benefit the company rather than your own
abide by the rules and regulations outlined by the company Articles of Association, which are written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary
notify any shareholders if you might benefit personally from a company transaction
always act with the intention of making the company successful.

Having a Limited company can also add professionalism to your business. This can help your business become even more successful because customers, clients, and B2B companies will be more inclined to trust you and buy your products or services if you are a limited company rather than a sole trader. It is quite common for B2B companies only to trade with another limited company as a general rule.

A final benefit is, if you have a profitable Limited Company, how you distribute salaries and dividends can have income tax savings, especially once your Read more

Tax Time! Opening on Saturdays as of November.

October 15, 2019/in 2019, 2020, Book keeping, Bookkeeping, payments on account, Personal allowance, Self-assessment, Self-employed, Tax, Tax calculation, UTR/by Taxfile

Need Help Filing Your Tax Return?
Make an Appointment to Beat the Rush!

Your Self Assessment Income Tax for 2019-20 will need to be submitted and an initial payment be made to HMRC by no later than 31/01/2021. This means that you need to calculate your income tax for the period 06/04/2019 through to 05/04/2020. We urge anyone who needs to file a 2019/20 Self-Assessment tax return to come and see us soon. By doing so, you’ll avoid the last minute stampede — way too many people leave it until December or January, which is the busiest time in the tax and accounting calendar. While the HMRC deadline for tax returns is the end of January, you run the risk of being caught up in the bottleneck if you leave things later than December. Taxfile files tax returns for thousands of customers during November, December and January, so we’re incredibly busy at that time of year. So, those leaving it until the last minute not only run the risk of being charged more to cover the long hours and overtime that we need to work during January, but they also risk receiving a fine from HMRC if they miss the deadline completely because they left things so late.

So the message is: please book an appointment with us now, to beat the end of year rush.

For Self-Assessment tax returns, records for the period 6th April 2019 to 5th April 2020 are required. For business accounts, we will also need to do accounts based upon the business’s individual year end.

Open for Saturday Appointments from November

Saturday morning appointments should be more convenient for those who work on weekdays so we will be opening our doors on Saturdays for appointments from 2nd November. Our opening times will be 9am to 1pm by appointment only.

To book an appointment, please call 0208 761 8000 or book an appointment online here. Many thanks.

[Updated 7 August 2020]

Autumn Newsletter 2018

November 12, 2018/in 2017, 2018, 2019, Accountancy, Bookkeeping, Income tax, London, Newsletter, Self-assessment, Tax, Tax advice, Tax advisers, Tax return, Tax returns, Tulse Hill/by Mark

Those of you who are not on our mailing list may be unaware of our latest newsletter. So, we thought we’d post a little about it here, along with a link where you can download an Acrobat PDF version to read at your leisure.

Keep on Top of your Taxes

The Autumn 2018 Newsletter is packed full of articles and advice to help you get on top of your taxes, make sure you are aware of the services we offer and, above all else, ensure that you file your tax return in good time.

It’s Tax Return Time! Act Now!

When it comes to Self-Assessment tax returns, the main message is to act now. That way you will avoid the January stampede and any unnecessary, additional expenses.

Key Contacts at Taxfile

Along with other tax news and advice, we also include a very useful table of your key contacts at Taxfile. Simply choose the service you require and the key people responsible for helping you can be found alongside, including their email addresses for direct contact.

Download the eNewsletter

To find out much more, download the Taxfile Autumn 2018 Newsletter here.

Professional Help to Get Your Tax Affairs in Order

Taxfile are super-keen to help you through the maze of HMRC rules and tax regulations. We’ll get your paperwork, accounts, bookkeeping and tax returns all in order. Simple!

Open for Saturday Appointments

Taxfile’s Tulse Hill (SE21) office is now open on Saturday mornings, from 10am until 1pm, for pre-booked appointments. So, if you’d like to discuss any aspect of your tax and a weekend appointment is more convenient than a weekday, call 0208 761 8000 to book one or book an appointment online here.

May Newsletter – New Battersea Branch, Easy CIS Tax Refunds, Avoid £10 Daily Fines & More

May 11, 2018/in Accountancy, Accountants, Accounts, Battersea branch, Bookkeeping, CIS, Construction Industry Scheme, Contractor, Devon, Income tax, Late return, Limited companies, Limited company, London, London SW8, National Insurance, New CIS, NI, Payroll, Rebate, Refund, Self-assessment, South West, Subcontractor, Tax, Tax advice, Tax advisers, Tax bill, tax experts, Tax overpayment, tax rebates, Tax refunds, Tax returns, Taxfile, Tulse Hill, VAT/by Mark

Our informative May e-Newsletter is now ready to view online. It includes exciting news of our new branch opening in Battersea along with important tax and accountancy-related news that might affect you. Here is a quick summary of the newsletter’s contents:

The first article announces the opening of our new Battersea Branch in London SW8. New and existing customers are welcome to pop in and say hello and to get expert help with your tax affairs and accountancy requirements. Learn more about the opening of the Battersea branch, and the core services on offer, here or click the big button below to read the newsletter.
If you work on one of the many Battersea construction sites in or around SW8, we can help you reclaim overpaid tax and much more … see the newsletter for more details – click the big button below.
If you’re a sub-contractor working in the construction industry scheme (‘CIS’), you’re almost certainly due a tax refund (learn why here). Taxfile are experts at getting tax rebates from HMRC, so come and see us and we’ll get you the maximum refund possible. Read the newsletter (click the big button below) to learn how we make your tax refund application fast and hassle-free.
We can help limited company contractors too! We’re tax and accountancy experts so we can help you register as a limited company or register for CIS if you’re not already set up, we’ll help you with the monthly tasks demanded of you by HMRC including accounts preparation, confirmation statements, corporation tax handling, CIS set-off rebate, National Insurance (NI), VAT, bookkeeping, payroll and much more. We’ll save you time and will make operating the Construction Industry Scheme a breeze. Click the pink newsletter button below for more details.
If you introduce a family member, friend or colleague to Taxfile, you will get a discount off your next tax return if they sign up as a new paying customer with us. Click the button for details.
Taxfile recently printed some brightly coloured postcards to promote our new Battersea office and our tax-related services. Simply get in contact if you’d like some of these postcards to hand out to colleagues. If you write your full name on the back and use it to refer a colleague, it might even save you money! Click the button for more details.
Our team are multi-lingual and always happy to help. If English is not your first language, let us know and we’ll try to match you to the most appropriate staff member.
If you, your friends, family or colleagues have not dealt with your old tax returns, HMRC will be adding £10 per day to the penalty from 1st May. That’s on top of the £100 fine that will have applied immediately after missing the original 31 January deadline. Let Taxfile get your tax records, tax returns and overdue tax all in order so you don’t have to pay any more in fines than you have already. Learn more here or contact your nearest branch for a consultation.
All Taxfile clients get free ‘Tax Enquiry Fee Protection Insurance‘ when they file their tax return through Taxfile by the statutory deadline. So – if you’re investigated by HMRC – our fees to sort it out are covered. Click the button for more details.

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