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ACCOUNTING COMPLIANCE

WHATEVER STAGE YOUR BUSINESS IS AT, THERE ARE ALWAYS ACCOUNTING COMPLIANCE AREAS THAT YOU MUST COMPLY WITH.

DIGITAL COMPANY ACCOUNTS

As a registered company in the UK, you’ll need to submit your company’s end-of-year accounts to HMRC at the end of each financial year.

For small, medium and large companies alike; this process can often be a daunting task.

It’s vital that you work with an accountant that understands your business and is proactive in their approach to your accounting compliance.

As HMRC continue their advancements in making tax digital; it’s really important that your accountant is competent with digital technologies to keep you digitally compliant.

At DIGI Accountancy, we are qualified, ICAEW chartered accountants and Digital Tax specialists.

Digital bookkeeping is now thriving throughout the world. This allows our in-house accounting compliance experts to generate and file digital accounts upon your company’s year-end passing.

Xero, a making tax digital leading accounting software, allows you to generate a ‘live’ picture of your accounts to date at any point throughout the financial year.

DIGI Accountancy is a XERO specialist UK Accountancy Firm, here to help with your accounting compliance.

CORPORATION TAX

Corporation tax is a tax that is levied on the profits of limited companies and other legal entities in the United Kingdom.

At Budget 2020, the government announced that the Corporation Tax main rate (for all profits except ring fence profits) for the years starting 1 April 2020 and 2021 would remain at 19%.

In the Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1 April 2023. The small profits rate will apply to companies with profits of not more than £50,000, with marginal relief available for profits up to £250,000.

It is important to note that corporation tax is not the only tax that businesses have to pay. Businesses also have to pay VAT, PAYE (Pay As You Earn) and National Insurance contributions.

The amount of corporation tax that a business has to pay is based on its taxable profit.

This is calculated by adding together all of the company’s income and then deducting any allowable expenses. The amount of corporation tax that a company has to pay can also be affected by other factors, such as how much foreign income the company has.

DIGI Accountancy is a UK Accounting Firm helping clients nationally with their corporation tax.

By specialising in Digital Accounting, we provide live accounting compliance data to accurately provide a Corporation Tax figure at any point during the year. This will provide you with sufficient time to plan for any liabilities well in advance of deadlines.

PERSONAL TAX

Personal tax in the UK is a complex and ever-changing area. There are a number of different taxes that individuals may be liable for, depending on their circumstances. These include income tax, capital gains tax, inheritance tax, Stamp Duty Land Tax and more.

The amount of tax that an individual pays will depend on a number of factors, including:

  • Their income
  • The value of their assets
  • Whether they are resident in the UK
  • and more

Income tax is charged on all income that an individual receives from employment, self-employment, investments and pensions. The rate of income tax depends on the amount of income that an individual has.

Capital gains tax is charged on any profits that an individual makes when they sell assets such as property, shares or investments. The rate of capital gains tax depends on the type of asset that is being sold and the amount of profit that is made.

Inheritance tax is charged on the value of an estate when an individual dies. The rate of inheritance tax depends on the value of the estate and the relationship between the deceased and the beneficiaries.

Stamp Duty Land Tax is charged on the purchase of property in the UK. The rate of Stamp Duty Land Tax depends on the value of the property and the location in which it is situated.

Included in your Accounting Compliance, DIGI Accountancy will help to manage your personal tax.

Your personal tax returns and the tax payable will be mapped out from day one of the tax year, so any liabilities can be planned for well in advance of the dreaded ’31 of January’ deadline.

Accounting Compliance

VAT

Businesses with a taxable turnover of over £85,000 in a 12 month rolling period must register for VAT. There are also additional VAT scheme options available if your turnover is over £85,000 but under £150,000.

UK businesses registered for VAT must charge VAT on most goods and services they supply to their customers. They can then reclaim any VAT they have paid on goods and services used for their business.

The standard rate of VAT in the UK is 20%. Some items are exempt from VAT, such as books and children’s clothes. Some are subject to a reduced rate of 5%.

If your business is registered for VAT, you must:

  • Charge VAT on most goods and services you supply
  • Keep records of the VAT you have charged and paid
  • Submit regular VAT returns to HM Revenue & Customs (HMRC)
  • Pay any VAT you owe to HMRC

If your business is not registered for VAT, you cannot charge VAT. You may be able to register voluntarily if your turnover is above the registration threshold.

VAT is a complex area and there are strict rules about what can and cannot be reclaimed. You can find more information on the HMRC website.

VAT can be difficult to understand and the regulations surrounding it are constantly changing. There are so many rules and exemptions which are often difficult to interpret if you are not from an accounting compliance background.

DIGI Accountancy provides VAT Compliance services to help keep on top of your VAT accounting and submissions.

PAYROLL & PENSIONS

Payroll is the process by which employees’ salaries are calculated and paid. In the UK, payroll is usually processed weekly or monthly. Payroll involves a number of tasks, including calculating hours worked, deducting taxes and National Insurance contributions, and issuing payslips. 

Pensions are an important part of planning for retirement and provide a regular income in later life.

Payroll services are time-consuming yet a pivotal function of any business.

DIGI Accountancy provides payroll & pension services to businesses of all sizes. There are many advantages to outsourcing payroll, such as not having to train multiple staff on how to run a payroll and not having to pay for expensive payroll software.

Accounting Compliance with DIGI Accountancy

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