When you buy stock or small or everyday things for your business, you can deduct the cost from your income before having to calculate the tax that is due. This is why it is called tax deductible (business) expenses. In your accounts, you might categorise them as stock, materials or office supplies as appropriate… and […]
Accounting
Director’s Salary and Dividends 2020-21
As we start a new tax year, the question of what directors of their own limited company should pay themselves arises. Since the coronavirus/covid-19 crisis, this has taken on new significance, as directors who are able to furlough themselves can only claim 80% of their PAYE salary through the coronavirus job retention scheme. This is […]
Accounting for eBay Traders
From it’s humble beginnings in 1995, where one of it’s first auctions was the sale of a broken printer, Ebay is one of the dot.com’s success stories. Trading on Ebay has exploded in recent years and many people use an eBay shop as their sole online outlet. The Advantages of Selling on eBay It’s easy to […]
Engaging an Accountant
The term “accountant” is not a legally defined or protected one. Therefore, while you have to be qualified to call yourself a “doctor”, you don’t have to be a qualified accountant to use “accountant”. In the UK and Ireland, there are six major professional accountancy bodies, whose members have “chartered status.” Full membership of any […]
What Is In Your Year End Accounts?
Profit and Loss The Profit and Loss account is probably the financial statement that gets the most attention. At it’s simplest, it is merely a statement of income less expenditure – which hopefully still leaves a positive figure. If you are a plc (public limited company, who’s shares are traded on the stock exchange), the […]
Introduction to Payroll
Payroll Basics Logically, the basics of payroll are straightforward but unfortunately, there are various rules and thresholds which can make actually operating a payroll less so. In calculating an employee’s pay, normally, you begin with their gross pay and then work out the deductions. After taking away all the deductions, the net pay figure is what […]