As we’ve said time and time again, operating through your own limited company is far more tax efficient than running as a PAYE employee of an Umbrella.
There is slightly more paperwork involved, but technology and a good accountant will mean that 99% of the latter-day hassle is removed.
In this article we will examine returns that must be made to companies house and HMRC and detail how AccountsNet standard service handles it with ease.
If you are Vat registered (standard or flat rate) then you must submit a vat return showing vat from income vs vat from expenses to HMRC, this is normally due quarterly.
The AccountsNet portal, which you can see from the demos on our site, captures your invoices and expenses and builds up a Vat return through the quarter. At the period end, we then automatically produce a Vat return (viewable on the site) and then transmit the return to HMRC electronically.
Payroll for you and your employees
Each month (or week if you prefer), we run your company payroll based on the gross (or net) amounts you have set for each employee on the portal. We then upload the payslip for viewing and printing. We also transmit RTI information electronically to HMRC for the payroll period.
This is a document that must be submitted to Companies House each year informing them of any changes to registered office, shareholdings or new appointments.
Companies house charge £13 for this submission, and AccountsNet complete this form on your behalf, and recharge the £13 to your company via BACS.
Company tax return
This is prepared as part of the companies annual accounts, and AccountsNet prepare and submit this on your behalf.
As a company director, you are required to complete a self assessment by 31st January each year.
Within the AccountsNet portal, we have a self assessment questionnaire. We already have your salary and dividends recorded within the portal, so you only need to add any income (for example property rental income) to the questionnaire, and we then complete and submit your return electronically to HMRC (after you approve it of course).
Unless you opt for our all inclusive bookkeeping service, then you will need to enter your income and expenses into the portal.
If you create invoices via the portal, then one half of this is already done.
You can also upload bank statements in csv form and either process the items one by one, or set-up rules such so that the customer and code is selected automatically when the ‘payee’ or ‘description’ in the bank statement entry is processed by the portal.
You can also take a photo of expenses, for example lunch receipts on your mobile and upload them to the portal for processing.
Whatever way you work with the portal, it should take no more than about an hour per week to keep your company finances in good order.
We hope that you’ll agree, there isn’t too much to be done from the client side as our accountants and bespoke in-house desktop and mobile software handle all returns and submissions to HMRC and Companies house on your behalf, leaving you more time to concentrate on your contract work.