Our Solutions
Our Company
© 2024 Harrison Hinchliffe. Glossop Manchester
Instructing us as your Accountants
How will I be charged?
Upon requesting a quote, we will provide you with an annual fee for all of your accountancy needs, this will be spread out over your tax year and paid in monthly installments meaning there will be no large bills you are required to pay
I am behind in my accounts can you help?
Of course, many people that start up a business loose track of time when they are trying to grow. We can get you up to date and on the right track.
I am not very good with admin, can you still help?
Yes! Every client is different, we can use different systems and automations to assist you with the administration side that can leave very little for you to do.
You are not local to me, can you still help?
Yes, we have clients all over the UK. We use online systems to enable us to share information easily and securely.
How do I sign paperwork if I cannot get in to your office?
We use a HMRC approved e-signing service provider that captures your e-approval. It is as simple as a few clicks upon receipt of the email.
How do I sign paperwork if I cannot get in to your office?
We use a HMRC approved e-signing service provider that captures your e-approval. It is as simple as a few clicks upon receipt of the email.
Is there a consultation charge?
No, this is all part of our service and is free of charge
VAT
How often can you submit and pay your VAT?
Usually this is done on a quarterly basis however there
How long do I have to submit my VAT return and make payment?
You have 5 weeks after the period end date to prepare, calculate, submit and pay your VAT Liability.
If I’ve filed my VAT late do I get charged?
Yes, you get both late filing and late payment penalties. HMRC has a tier for penalties. We can discuss these with you in more detail.
What’s the UK VAT threshold?
£90,000 from 1st April 2024 for any 12 month rolling term
What’s the UK’s de-registration threshold?
£88,000
Can I use online systems to submit my VAT returns?
Yes, we are familiar with: sage one, quick books, xero & clear books but all online systems are similar so we will be happy to help you.
Limited Company
Can I pay myself a salary and take dividends?
If your business is set up as a Limited company then yes. Paying yourself a salary alongside a dividend is usually the most tax efficient way to draw money out from the business.
How often can I take dividends from my Limited Company?
There aren’t any rules as to how little or often you can pay a dividend, you can pay yourself or your shareholder whenever you like as long as the company is a going concern.
What is an accounting period?
An accounting period is a timeframe that’s used to submit your financial reports and to pay any corporation tax from the Company’s profits. Each Company will have different accounting periods depending on when your company was incorporated.
What is a Company Authentication code?
Each company will have their own unique 6-digit code, which will then allow you to make changes and file with companies house directly on your behalf.
Self-Assessment
How do I pay any self-assessment tax I owe?
Once your self-assessment has been submitted, we will tell you how much tax you owe, when it is due and how it can be paid.
What is the self-assessment deadline?
You have until the following 31st January to file your tax return and pay any tax owed.
What is a payment on account?
A payment on account is advanced payments made towards your current year’s self-assessment tax bill. You are required to make two payments on account each year if your self-assessment tax bill was over £1000 in the previous tax year.
Where’s my refund (CIS)?
Upon approval and submission of your tax return, HMRC’s turn around is usually within two to six weeks to issue your refund. We will contact you when we have received communication from HMRC.
Payroll
Do I need to register as an employer?
Yes, we can do all of the registrations and set up’s for you.
Will I receive a pay slips for my staff?
Yes, the pay slips will be sent over either weekly or monthly depending on your pay period.
How will I know what I owe HMRC?
We will send over a payment advice document detailing what is due, when it is due and how to pay.
CIS
What is CIS?
The Construction Industry Scheme. This is a government scheme for ensuring self- employed construction workers pay tax and NI deductions.
What work is covered by CIS?
CIS covers most construction work to:
- a permanent or temporary building or structure
- civil engineering work like roads and bridges
For the purpose of CIS, construction work includes:
- preparing the site, eg laying foundations and providing access works
- demolition and dismantling
- building work
- alterations, repairs and decorating
- installing systems for heating, lighting, power, water and ventilation
- cleaning the inside of buildings after construction work
Do I need to register?
We can handle all registrations for you if you haven’t already done so.
Will I have to submit a Self-Assessment tax return form?
Yes, we can handle this for you.
Can I expect to receive a tax bill at the end of the tax year?
It depends on your personal circumstances and if you have been taxed at source through the CIS Scheme, if you have then you will be entitled to a tax refund.
Pension
As an employer do I need to offer my staff a pension scheme?
By law yes, each work place has to offer a workplace pension. No matter their contracted hours.
What is auto-enrolment?
Auto-enrolment is when an employee meets certain requirements and is made a member of a workplace pension scheme without asking to be part of it.
Can my employee opt out of their pension scheme?
Yes, staff members can opt out of a pension scheme at any point but will be automatically opted back in after 3 years.
What are the minimum percentage contributions for both employers and employee’s?
All together is 8% by law. Broken down is Employer’s = 3% and employee’s = 5%. You can increase this as long as this is agreed by both employer and employee.
Do I need to submit a pension declaration and how often?
Yes, its an online form made to the pension regulator to ensure that as an employer you have met your legal duties. It’s down to the employer that this declaration if completed on time and that the information submitted is correct, failure to do so can result in fines. This will need declaring once every three years. As part of our payroll service we can ensure this is done for you.
Making Tax Digital
Do quarterly updates mean I’ll pay tax four times a year?
No.
Quarterly updates are for reporting purposes only. You will still pay tax under the current Self Assessment system unless HMRC introduce changes in the future.
However, submitting updates regularly can help you budget for your tax bill throughout the year rather than facing one large payment.
Will Making Tax Digital replace my Self Assessment tax return?
No.
You will still need to submit a final year-end declaration (similar to your current Self Assessment tax return).
Under MTD, you will submit:
- Four quarterly updates, and
- One final declaration at the end of the tax year
Who needs to comply with Making Tax Digital for Income Tax?
From April 2026, MTD will apply to:
- Sole traders, and
- Landlords
With qualifying income over £50,000.
This threshold is expected to reduce in future years.
What counts as qualifying income?
Qualifying income includes:
- Self-employment income
- Rental income
It is based on your gross income (before expenses), not profit.
Do I need to use accounting software?
Yes. If you are handling things yourself.
MTD requires digital record keeping and submissions through HMRC-recognised software. Spreadsheets alone will not be sufficient unless they are linked to compatible bridging software (which we have 😊)
What happens if I stop being self-employed but still have other income?
If you cease one source of income (such as self-employment) but continue to receive other qualifying income (such as rental income), you will still be required to comply with MTD.
HMRC assess your total qualifying income, not each source separately.
This means you will still need to:
- Keep digital records, and
- Submit quarterly updates
You will only be able to leave MTD once your total qualifying income falls below the relevant threshold and HMRC confirm you can deregister.
What if I stop all sources of income?
If all qualifying income sources stop completely, you will not be required to comply with MTD.
You will still need to submit your final Self Assessment tax return and notify HMRC of the cessation.
What if my income falls below the threshold?
If your qualifying income falls below the threshold (currently £50,000, reducing in future), you may be able to leave MTD.
However, HMRC may require you to remain within MTD for a minimum period before deregistration is allowed.
Do I need to register for MTD myself?
In most cases, HMRC will identify affected taxpayers and notify them directly.
We will guide you through the registration process and ensure you are compliant at the appropriate time.
What happens if I don’t comply?
HMRC will introduce a new points-based penalty system for late submissions and payments under MTD.
Keeping accurate digital records and submitting updates on time will be essential to avoid penalties