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How to find a Cheap Accountant for Small Business in London?

How to find a Cheap Accountant for Small Business in London?

Accounting services are necessary for all businesses. They can handle all the financial and business matters. Most businesses in the world fail because they underestimate the value of accountancy. They don’t know how to handle the technicalities of accounting matters, and they ultimately fail. Accountants in London are helping a lot of people to manage different financial and business matters. They are helping businesses to solve their taxation issues, VAT return problems, and payroll issues. They know all the technical problems that may occur during a business, and they know how to tackle different issues. Following are the ways to find cheaper accountancy services.

Ask your colleagues or other people

After the establishment of the company, the main concern of all the businessmen is to run it successfully. They make special arrangements and try to reach it to success. They hire accountants for the management of different financial operations. Large companies can afford in-house accountancy departments, whereas small-run companies cannot. They have lower resources, and they cannot afford to hire in-house accountants. Therefore, they look for cheaper accountants. When you are looking for cheaper service providers, you may ask your colleagues or other people about different accountants. They can tell you about different service providers. You must ask them about the performance and capabilities of their services. You may contact them to ask their rates for providing services. You must make sure that the accountant must have good experience in the relevant field. He should know all the taxation issues, payroll matters, and bookkeeping services.

Search on the internet 

Everyone knows that the internet has become a big source of information. People can get any type of information from the internet. They can put keywords, and Google will display all the details. Therefore, when you are looking for a perfect service provider, you must search on the internet. Many accountancy agencies are providing services online. They have websites, and people can visit them to learn about a particular agency. Many people have uploaded the reports comprising the details and information about different accountants and their profiles. You may find renowned accountants or accountancy agencies on the internet. You may get their contact numbers, addresses, and office address. You can also find the reviews of different clients. You can read the reviews and understand the performance and capabilities of a particular agency. You must contact the mobile numbers of the accountants and ask them about their service charges.

Find the online accountant 

We know that with the advancement of the latest technology, people are shifting too much luxury lifestyles. They are leaving the routine office jobs in which they have to follow tight office schedules. They want to work according to their ease. They want flexible jobs where there is no restriction of the time. This is the reason that Online Accountants are becoming popular. Many businesses have started purchasing online services. Online accountancy services are becoming famous due to their advantages. Professional individuals are serving online, and they have no schedules. You can ask them any problem at any time. They can help you solve your issues as early as possible.

Many online accounting service providers are using the latest technology for facilitating their clients. They are providing all kinds of services such as taxation matters, VAT returns, payroll matters, bookkeeping services, and other financial transactions. They have procured the latest software for solving different issues. They just enter the essential data, and the software answers according to its algorithm. Online services are beneficial as compared to others because they are cheaper and easy to proceed with. They help you get services according to your ease. Their schedule is flexible, and most people enjoy this schedule due to flexibility.

Consider outsourcing your accountancy matters

Many companies are considering outsourcing their financial and business matters. Many companies in the market are acting as outsourced service providers. They know the different needs of a business. They know how to manage different financial transactions and investments. They can keep a record of the sales and expenses. They know how to keep the history of sales and purchases. It is difficult for small businesses to hire a personal accountant. They need Cheap Accountants because they have limited resources. They cannot pay heavy salaries to be renowned and famous accountants. Therefore, small-run businesses outsource their accountancy matters to a third-party. Many organizations are acting as a third-party. They own the business of their clients and try to provide state-of-the-art services. They have well-known and highly educated accountants. They have innovative and robust technology for solving different accounting problems.

How to select the right service? 

When you have collected information about different sources of accounting services, you must make a list of all the options. You must also make lists of different companies providing similar services. For example, you must have a list of the accountants providing online services. You must also have a list showing the number and name of the third-parties that you can use to outsource your business matters. You should contact different service providers. You must ask for quotation and service charges. When you have collected the desired details, you must compare the rates of different service providers. You must see which company is affordable and economical. You should select the company or service provider with the lowest rates. You should not compromise on the quality of work to reduce the service charges.

We have seen that for fining the best service provider, you must search on the internet. You can also ask your colleagues or people around you. They can help you reach the right Accountants for Small businesses. They can handle all the problems of your business. 101 Accountant is a well-known and popular organization. It has highly certified accountants and trained staff. They understand your problem and try to mitigate it. It is providing services at reasonable rates.

VAT Registration Understanding the Basics of VAT Threshold in London

VAT Registration Understanding the Basics of VAT Threshold in London

Different countries have different mechanisms for collecting funds for the management of administrative affairs. Tax collection through different mechanisms helps the government to raise funds. It uses these funds for the betterment and goodwill of people. VAT stands for “value-added tax.” Another name for this is a consumption tax. Governments charge this tax on the sales or purchases of different goods or services. Different countries charge different rates for VAT. All businesses need to register. They have to follow a standard process for registration. VAT Registration Services can help different become registered. You can register yourself or ask some agent for registration on your behalf. Let’s discuss the process of VAT registration and the basics of its threshold.

What is the importance of VAT registration?

VAT is a sales tax that is levied on the sales and purchase of different services or goods. There is a threshold limit of income from a business. When a business reaches that threshold, it needs to register to HMRC. Any business that does not register even after reaching the threshold may be fined. It is liable to pay the penalty or fine. Hence, all the business needs to register after reaching VAT threshold. It will provide various benefits to business owners. They can charge this tax on their products or services. They can reclaim the VAT they have paid during the payment of purchased goods for their business from other businesses. This shows that VAT registration is beneficial for a small business. Moreover, good citizens take care of the rules of their motherland and pay tax responsibly.

When should you register?

When we talk about tax collection, a question comes to mind that who has to pay tax? What is the legislation for taxpayers? Who pays income tax and how much? Similarly, we ask people to register their small businesses to HMRC. They may ask when they should register. Are there any criteria? The answer is that for all kinds of taxes and excise duties, there are criteria. It does not apply to everyone. Only certain individuals having a specific income are liable to pay tax. When it comes to VAT registration, we should know that there is a VAT threshold. When a business’s income reaches a threshold value, it becomes liable for registration. According to the law in London, VAT registration becomes essential when a company expects a VAT taxable turnover of more than £85,000 in the coming 30 days. It is also the same when your company’s taxable VAT turnover has exceeded £85,000 in the last 12 months.

The process of registration 

There are methods for doing something. When a company or department launches a new program, it also tells people how to use it. The process of VAT registration is simple. The easiest method is online registration by using your business tax account. You should search gov—UK’s registration hub. You can follow the whole procedure yourself. You can also ask some agents to register your company on your behalf. He will charge a service fee. This is also a good method because it can ensure error-less processing of the application. Another method is registration by post. Some businesses cannot register online, and they do register by using the VAT1 form by post. You can use this if you are applying for an exemption to get a registered or agricultural flat rate.

VAT rates in the United Kingdom

Different countries charge different VAT rates. They have different rules and regulations. When we talk about the UK, it has three different VAT rates such as 20%, reduced rate or 5%, and zero-rated VAT. These different rates apply to different objects. For example, luxury items such as jewelry, apparel, cosmetics, and others come under the category that has to pay a 20% rate. They charge the highest rate on luxury items because they are not for poor people. There are some items which are required by an almost greater number of people. A reduced rate applies to these items. For example, energy solutions for homes, children’s car seats, and other items of this type pay reduced VAT rate. 5% rate applies to these items. Zero-rated VAT applies to essential items such as foods. The logic behind this is that foods are essential for everyone, either they are poor or rich. Necessities should be accessible for everyone.

VAT threshold in London

We know that there are more than 200 countries around the globe. They have different VAT thresholds. This is the minimum earning and income limit. When a company reaches this income, it has to register to HMRC. When a company is working in the UK, it has to follow threshold values according to the rules of the UK. When your taxable volume of sales becomes equal to or exceeds £81,000, you should register to HMRC. This is the VAT threshold. When you have reached this level of sales volume, you should not ignore it. You should register as early as possible. Ignoring at this point can lead you to penalties or fines. As a good citizen and good businessman, you should be responsible and follow the state laws. This sense of responsibility is beneficial for both country and business.

Who can get an exception?

Some businesses can get an exception from registration. They must apply through a proper channel. When you think that you are reaching taxable turnover temporarily, you can apply for an exception. You will have to show evidence in favor of your claim. You can write application HMRC at the address “HM Revenue and Customs- VAT Registration Service Imperial House 77 Victoria Street Grimsby DN31 1DB United Kingdom”. They will consider your application if it meets the standards and grants exceptions. If they found that you are not eligible for the favor, they will register you for VAT.

VAT Registration Services in London can help you register your business for VAT easily. They can register your business online on your behalf. 101 Accountant has become a renowned organization that is helping many business owners to register for VAT. Its qualified and professional staff knows about the VAT threshold. Its team can guide you about the whole procedure.

What are Payroll Services? Lets Have a Look

What are Payroll Services? Lets Have a Look

We know that many companies are working to make profits. Different companies sell different things. Some companies sell products whereas others sell services. They charge for selling services or products. They always struggle to increase their sales and increasing their profits. They may promote their company through advertisement campaigns. Different companies have to calculate the salaries and bonuses of their workers. They cannot afford to hire in-house accountants for payroll services. Therefore, they purchase services from payroll service providers. Some companies provide Payroll Services for Small businesses. Let’s discuss the payroll services and how it works.

What is payroll service?

You may have observed that all the companies have to hire some workers for performing different jobs. They hire many employees. For example, a company consists of many departments. It consists of finance and accounts, production, storage, marketing, and other departments. These departments contain relevant professionals. The marketing department contains employees that know how to promote and advertise different products or services of the company. The production department consists of engineers, workers, and assistants. Different departments have a specific number of employees. All the departments collectively have a large number of workers. The company has to pay their salaries. They have different ranks and variable salaries according to their ranks. A department within the company that calculates the salaries and bonuses of the employees is known as the payroll department. If a company cannot afford to have a full-fledged department for payroll, it can hire payroll services for calculating and keeping the record of its employees.

A third-party that calculates the salaries of individuals on behalf of other companies is known as a payroll service provider. Many companies are providing these services either online or through their offices. They have different rates.

How to manage payroll matters?

Payroll matters are not easy to handle. They require great care and caution to ensure that the record is safe. The payroll department has to keep the record of different employees. It has to keep the details of all the employees. For example, the name, national ID number, mobile number, email address, and visiting address of the employees are essential for maintaining a record. The payroll department has to keep the data of newly appointed employees and the individuals that have left the company. This department ensures that all the workers are getting exact salaries according to their work and rank. It calculates the salaries and makes deductions according to the criteria. It also has to make income tax deductions according to state rules. This shows that this job requires great care. The payroll manager has to ensure that all the matters are running safely. They run different processes without errors and mistakes.

Who can manage payroll?

People in today’s world work according to their skills. They work in their specialty to make a good name. For example, doctors work in hospitals; teachers work in schools and colleges. Similarly, for the management of payroll matters, different companies hire an accountant. Different companies may hire accountants according to their budget. Small-run companies cannot afford to hire an in-house accountant. They cannot pay his salary. They cannot pay for the cost of infrastructure. Therefore, they do not hire accountants for the management of payroll matters. Instead, they hire services from a payroll company. There are different service providers. They have qualified and professional accountants. They know how to manage different accountancy affairs. They have respective skills for making this management awesome. Therefore, you should contact a company that has highly qualified accountants. They can help you manage your payroll matters efficiently.

Rates of payroll services in London

The rate of payroll services varies from country to country and city to city. Different companies charge different rates for providing services. When you are looking for payroll services in London, you must be ready for higher rates. Their rates depend upon your workforce. The smaller the workforce, the greater charges you will have to pay. On the other hand greater workforce becomes less costly. The normal rate for payroll services in London ranges from £4 – £6 per employee, per month. Its values may become lower if your workforce is greater in number. This rate is for one to ten employees. When you have a greater number of employees, you can purchase these services at lower charges. For example, when you have more than 250 employees, you must hire their services. It will be cost-effective to hire for payroll services.

When we talk about the rate of different payroll services, we should keep in mind that different companies may charge differently. The rate of payroll services depends upon the number of employees. When you have a greater number of employees, you can reduce the cost per employee.

What you see while purchasing services 

When you are going to purchase services from a payroll company, you must not blindly select any company. You should see the reputation of the company. You must make a list of different companies. You should take their contact numbers and other contact details. You should talk to them about their services and capabilities. You must ask about the qualifications and experience of their staff. You must see how big their company is. You should compare the rates of different service providers. You should take a quotation from different companies and then compare different companies with each other. You should select the one that has the lowest rate per employee. You should also consider the reputation of the company. You should ensure that company has a good reputation in the market. This will help you have a better experience. You should also consider the technology and staff of different service providers.

When you have a small company and cannot afford to hire an in-house accountant to manage payroll affairs, you must lock a deal with a renowned company to get Payroll Services in London. 101 Accountant has innovative technology and qualified as well as professional staff. It can help you get the best payroll services at reduced rates. They provide state-of-the-art services at reasonable prices.

Reasons to Start a Business in London

Reasons to Start a Business in London

People establish businesses for earning their livelihood and making profits. They search location that is the best option for setting their industry. They see a location that is ripe and where more people come. They also see the way of transportation and traveling. When it comes to London, it is the best place for starting a business. It has greater exposure and a greater number of customers. It is a global city where people visit from all across the globe. You can communicate with clients from all over the world. Business Consultation Services will advise you to start a business in this city. It has many opportunities for growing fast. Let’s see why it is good to start a business in London.

A global city with a global population

The most important factor that is a reason for starting a business in London is its global population. Its population is eight million, and out of eight million, there are three million inhabitants born outside the UK. Its inhabitants belong to different cultures and ethnicities. This is an astounding feature of starting a business in this city. The big numbers of people from other countries are still coming to this city. Their population is still increasing. This can help you start a business to become successful. You can reach customers from all over the world. You can target any country or culture. The global population has made this city a big city. It has increased its value to start a business.

A big number of investors 

When you are going to establish a company, you need investors. For this reason, you will find a place where you can get a greater number of investors without any difficulty. Investors do not like to invest their money in remote places. They only invest at places where they know that they can earn greater profits. When it comes to London, you can get a great number of investors. This is a big place for startups. People do not hesitate to invest in this city. The only thing that you require for winning the attention of investors is a working plan. Your business plan should be reasonable and reliable. It should be profitable. People will see the value of your business plan and invest accordingly.

Greater exposure 

When you think of establishing a company in London, you should see how much exposure you require. In this city, you can have increased exposure. Many newspapers and magazines are operating in this city. You have many choices to select from. You can target any community according to your products or services. You can promote your business through advertisement. You can use newspapers, magazines, and other channels for promoting your services or products. This is the best thing about this city that you can promote your company and its offerings easily. You can target all kinds of people.

Growing and advanced community 

We know that London is a global city. It means that it has many people that have been born in other countries. They do not belong to London. Many people belong to other countries. You can meet people from all countries there. This has made the community of this city advanced. They belong to rich families. They know the value of different commodities. London is still welcoming a lot of people from all over the world. Hence, it is a growing community. You can sell anything in this city. You have many choices. You can target any culture of the country and produce their products. You can use these inhabitants to make your products popular in their countries. This city can help you make your product internationally famous.

It is a fun place

Whenever people are looking for a perfect place to start a business, they see a fun location. It means that a fun location is one where people come for recreation and amusement. It is a destination at which people come to spend their vacation. Such places welcome big gatherings and host big events. They are places to provide entertainment. These places are the best option for business. Due to the increased number of people, they can help you sell a greater number of products. They can help you earn more profits by spending lesser amounts. When it comes to London, it is a fun place. It hosts people from all over the world. It is a great place for gatherings and events. Therefore, you can start a business here for becoming successful.

You can access talented individuals.

All the companies and businesses need talented individuals to run their companies. They need highly qualified and professional individuals to run the everyday operations of their business. They look for talented guys for helping their business make progress by leaps and bounds. This is the reason that investors see a location for starting a company where they can easily find talented personalities. London is the best place where talented people from different parts of the world come. You can reach out to talented individuals easily and use them to enhance the performance of your company. You can easily hire marketers, engineers, and other professionals for your company.

It is easy to do

The most important thing that businessmen consider is the ease of doing business. They search the locations where the government is providing all kinds of support. They search the area where security is not an issue, and the government facilitates businesses through various ways. London is hosting many people for starting a business. Its government provides loans and all types of support. These things have made this city the best place for starting a new company. It is easy to do business in this city.

Businesses are not easy to do. When you are going to start a new business, you should consider the location, its exposure, population, behavior of government, and other factors that can assist you in doing business. 101accountant is the best Business Consultancy London. It can provide you consultancy services for starting a company. It has many highly expert and qualified professionals that can help to establish a new business.

Top important Skills Every Accountant must Have

Top important Skills Every Accountant must Have

Accountants are qualified individuals that tackle and manage different financial matters of a company. They make use of formulae and other tactics for professionally manage different matters of taxation, payroll, and investment. Professional Accountants can help their employers to plan for the future and make feasibility reports. They know about the market conditions and predict the future of a business. They know how much a business can earn and what will be the condition of a particular business. They are proficient in computer software. They utilize different software for the management of accountancy matters. Following are different skills that an accountant must-have.

Analytical and Organization Skills

When we talk about accountancy matters, we need an accountant with a detail-oriented and meticulous eye. Accountants must sift through complex financial records and files to see whether they are accurate or not. They should make sure that all the results are consistent. Good accountants can tell about the authenticity of the analysis by just looking at the report. They can tell whether the fact and figures are correct or not. They possess the ability to put analysis together. Their analytical skills can help to save a business from losses. Good accountants must also possess good organizational skills. They should know how to manage important files and records. They should know different strategies to categorize different files and keep them organized. It will help to find the required files in time of need. The organized files are easy to get from shelves.

Interpersonal and Communication Skills

Interpersonal skills are highly essential for professional accountants. They should know how to communicate with different individuals. For example, accountants have to formulate reports and presentations on different reports. They may have to make a report on the profits and losses. They have to describe the reasons for losses. After preparing a complete report, they may have to present it before the owners and other officers. They need extra efficient interpersonal skills and communication ability to describe different points. They should have a strong grip on different accountancy terminologies. They should know how to communicate with owners and colleagues. They should know how to explain different financial problems. Accountants with good communication and interpersonal skills can become successful in the field.

Adaptability and Critical thinking

Accountancy matters are complex. Accountants have to face inaccuracies and discrepancies. They have to address different errors because, in other cases, they may lead to serious problems for the employer and clients. For solving such problems that come out, again and again, accountants must think critically. With critical thinking and analysis, they can reach the exact problem. They should know how to transform numbers, charts, and figures into a story. Their critical and analytical abilities can help them find the problem early.

We know that evolution is a fact. Every profession evolves. The same is the fact with the field of accountancy. It is evolving and becoming complex. Accountants must be adaptable to new research and trends. Research is essential for addressing different problems, and it generates new roadmaps. Hence, accountants should become adaptable to new methods and strategies.

Time management and knowledge of the industry

We know that there are many responsibilities of accountancy department. It has to calculate salaries and keep the data of employees. It has to calculate tax and make sure that it is paid before the deadline. It has to plan for the future and make feasibility reports. Many financial matters are complex, and it has to handle all the financial matters. It requires efficient time management for tackling different tasks of accountancy. Accountants must know how to manage and divide time for different tasks. They should complete all the tasks within the given time. This will increase the value of an accountant.

We know that accountants have to work for different industries. They have to manage different financial tasks of a business. Therefore, they should know about industries. They should know how the industry works. They should know about different departments of a company. It will make them capable of handling different industrial matters.

Team collaboration and writing skills

Different offices have teams for working on a specific task. For example, the accountancy department consists of many accountants. Different accountants work for different financial matters. Some individuals will work on taxation matters, and others may work on payroll affairs. Some officers may have the responsibility of future planning and investment. They are a team. They should know how to collaborate. They should share information. They should help each other and work for the goodwill of the company. Their interpersonal communications are highly encouraging for producing excellent teamwork. Accountants must possess good writing skills. They should know how to write reports and letters to concerned departments. They should know how to write analysis reports. The excellent writing skills of accounting professionals can lead them to success.

Payroll and Taxation Matters

We know that different businesses have to pay tax. They should pay tax for the goodwill of the country. Each country has different criteria and rules for tax collection. Accounting professionals must know about the rules and regulations of a country. They should know about different categories and types of tax. They should possess complete knowledge about taxation matters. Another important thing that accountants must have is knowledge of payroll matters. They should know how employees work and how they are paid. They should know different state rules and regulations for payroll. The exact and correct knowledge of the field and different tasks can help accountants to become successful. Companies look for Cheap Accountants. Therefore, accountants should charge lesser amounts for small tasks.

Accountants are essential for all businesses. They can lead a business to success. Accountants for Small Businesses can tackle different financial matters efficiently. They know how to manage payroll, taxation, and other financial affairs. 101Accountant has become a big name. It has a highly qualified team of accountants. They can tackle all the financial matters.

What does VAT Pay for in the UK?

What does VAT Pay for in the UK?

VAT is an abbreviation of Value-added tax. This is a kind of tax that you have to pay when you purchase products or services from some company. Different products have different rates for VAT. Some objects have lower rates, whereas others may have greater VAT rates. Some goods do not have to pay VAT. VAT Registration Services can help you register your company. There is a proper system for the registration of a company. Different service providers can help you register your company with complete ease. Let’s discuss VAT.

What is VAT?

Government has to provide various facilities to people. The main source of income for the government is the tax that people pay. Each country has a proper system for collecting taxes. It charges specific duties on different services and businesses. All the businesses and people having income in a particular range have to pay tax. The government utilizes this raised tax for the construction of roads, schools, and universities. It also consumes money for providing healthcare facilities, security, and many other services. There are different kinds of tax. VAT is a specific type of tax that people pay on purchasing services or different products. Different countries charge differently for VAT. All the companies produce products and announce the prices by combining three parts. They include production cost, profit, and VAT. These three parts collectively decide the price of a service or product.

How does it work?

VAT applies to almost all the items and services. All the goods and products that people purchase from different stores charge VAT. Government registers businesses for collecting this tax without paying any charges. For example, the government has established an institute for collecting tax, and it pays different employees for their services. On the other hand, VAT registered companies are an unpaid source of collecting tax. They charge a specific amount of tax on different products they sell and pass it on to HMRC. This helps various registered businesses to save money. It makes the whole process simpler and simpler. Businesses transfer the collected amount to the government. This is an effective and cost-friendly system of collecting tax. There are different mechanisms that the government has set for charging tax from different businesses. It has a complex system of calculations and formulae that departmental officers perform and ask the business owners to pay.

How to register for VAT?

When your company has reached an annual turnover of £85,000, then you should register your company for VAT. This is the VAT registration threshold. For registration, you have to apply to HMRC (HM Revenue and Customs). You can register your business online. You can do this yourself, and you have another option for registration. You can ask some agent or accountant to register your company on your behalf. They will charge for providing this facility. When you have completed the process of registration, you will get a VAT registration certificate within 14 days. It can take a longer time in some cases. You should complete the whole process as soon as possible. Hiring some agents for registration can be a suitable and reliable method. Agents know the complete steps and procedure. They know how to systematically tackle different matters. They can do this more efficiently as compared to you.

How much money does it raise?

For every government, there is a target for collecting tax in each category. They make specific calculations and predictions about how much they can collect from a particular category. VAT can also collect a particular amount. Governments have a database for different companies. They know how many companies are registered with them. For example, the government knows the number of industries and their production capabilities. It uses particular formulae to calculate the amount of tax that they can raise through VAT. UK has an office for budget responsibility (OBR). It predicted in March that VAT would collect £136.6bn in the year 2019-20. It is 16.8 % of all the amount of tax that government collects from different sources. VAT constitutes about 6.2% of GDP. It is the total value of goods that a country produces.

It has different rates in different years. For example, during 2015, its rate was 15% due to the financial crash. This was a temporary rate. Before 2011, it was 17%, and after 4 January 2011, it was increased to 20%.

Comparison with other taxes

We know that government collects funds from different sources. It charges tax from different businesses and organizations. There are different kinds of tax. For example, income tax, national insurance contribution, and value-added tax. Each tax category collects a different amount. Income tax and national insurance contribution are collecting the highest tax for the country. The third biggest tax collector is VAT. These three types of taxes collect more than half of the funds that a government collects through taxes. This has provided us a clue that what is the value of VAT. It is an indirect tax that people pay unknowingly. They pay this on purchasing services and goods, but they don’t know that they are paying.

How much UK pays for VAT?

You need to know the right rate of VAT for your products and services. It will help you charge it correctly. There are three rates of this tax. It depends on the type of service or products that you are selling. Different products and services have different VAT rates. You charge it from your customers after selling your products. These three rates are standard rate, reduced rate, and zero rates. Currently, the standard rate in the UK is 20%. They charge this on the majority of products and services. All luxury items and foods such as ice creams and confectionery fall in this category. They charge a reduced rate for some specific products such as domestic fuel, children’s car seats, and power sources. The currently reduced rate is 5%. Most foods, children’s clothes, books, and newspapers pay according to the zero-rate category. All essential items fall in this category.

The collection of taxes is essential for managing different matters of a government. You must register your company to become a responsible citizen. You can get VAT Return Services from 101Accountant. They can help you get registered to HMRC. It has qualified staff that can help you manage all the matters of VAT.

How to File a VAT Return in London, UK

How to File a VAT Return in London, UK

Value Added Tax is a form of tax that is due for payment to HRMC. It contains the total purchases and sales in a certain period. There can be an amount that you have to pay, or you can claim a refund. There are different ways of filing this one. You can choose the best VAT return services in London. It is possible to use many other means in this regard. We will show you some important tips for this purpose.

Who is required to file

The first question that comes to the mind of people is who should file this one. The answer is quite simple. There is a threshold for a specific period above which every business registered with VAT is required to submit their returns. In this regard, you must choose an app for registration. If you fall below this threshold, then there are offline means for you as well. This threshold is currently £85,000. There is a special point that you should remember for this purpose. If you have already signed up for “Making Tax Digital for VAT,” then you are prohibited from using an online account for returns. Here, you have to use software that is compatible with it.

Frequency of submission

It is the period after which you should submit this data to the concerned department. This interval is known as the accounting period, and it is 3 months. That means you have to file returns 4 times every year. If you are using an online account, it will be able to tell you the dates. That is why you do not have to worry about it. But be careful with the due date and the date before which your payment should clear.

Online filing

It is easy for you to do this by using your online account. All the data should be composed by yourself in this matter. You have to keep all the records. It is essential to keep the book up to date by yourself and then submit it periodically. Many software provides the facility of submission directly to HMRC. This is a clear benefit for you in monetary terms as you will not have to pay an extra amount to the other services. But your burden will be huge. If you have plenty of time and can do it perfectly well, then you can choose this option. Otherwise, getting professional services is a better way.

Use of accounting software

As we all know that one cannot use an online account for submission if already signed up for Making Tax Digital. You have to use certain software that is compatible in this regard. Due to this, you can easily use various kinds of software available. Remember that it should connect with HMRC by Application Programming Interface, generally known as API. You can go to the website of the Government and see the list of compatible software for this purpose. Just put information in the app, and it will communicate with the required department. This is a great and easy way of submission. That is why you can use it quite conveniently.

Online services

If you do not want to have a lot of burden on you, then this tip is for you. There are many kinds of online services that can help like wonders in this regard. You can get the services of many online businesses that are dealing with the filing and submission of this kind of tax. You can choose the one specialized in VAT for your convenience. There are many services that you can choose from. You should search for top VAT filing or return services in the UK. You will get a list of top ones. You have to give them the data, and they will do the hard work for you.

Offline means

It is quite an easy way of filing the return. Many people do not know that on a certain basis, they can still file offline returns. There are certain requirements on which businesses can still do this. Especially the farmers who are 5 percent of the UK population. This exemption is for those people who do not have access to the internet. There are some other criteria in this matter. If online submission is not possible, in the case of disability, remote location, age, etc. Under these conditions, you can submit paper returns.

Filing the returns for VAT might be quite a difficult task for many people. Even with the evolving modern digital age, there are still many people that find difficulties in understanding the system. That is why we have given some tips for you to understand how you can do this quite easily. You can always get the services of 101Accountant for this purpose as it is the best service provider in this regard.

Is VAT Deducted from Revenue Or Gross Profit?

Is VAT Deducted from Revenue Or Gross Profit?

The value-added tax was introduced in the United Kingdom in 1973, replacing Purchase Tax, and is the third-largest source of government revenue after National Insurance and Income Tax. It is managed and collected, mainly through the Value Added Tax Act 1994, by HM Revenue and Customs.

VAT is levied on most products and services rendered in the United Kingdom by registered firms and on some goods and services imported from outside the United Kingdom. VAT is an indirect tax because the seller (the company) pays the tax to the government rather than the individual who bears the tax’s economic burden.

How Value Added Tax Works

VAT is imposed on almost all goods and services in the UK. VAT registered businesses indirectly act as tax collectors for the government. They charge tax on the products and services they sell to the consumers. Companies do not collect this tax without any reward. Companies that are registered under VAT save a lot of money. Most of the companies hire VAT return services to pay their tax. It is a circle of paying and collecting tax. Sellers charge this tax to their consumers and pay the same tax while making any transaction. Companies do not transfer this tax to HMRC every time they make a transaction, but they file a tax return quarterly or yearly of the total tax amount they collected.

Input and Output Tax

Input tax and output taxes are other names of VAT charged and the VAT collected. The input tax applies to the VAT for business machinery, supplies, or expenses charged by your company to its suppliers. This requires the procurement of professional services, such as consulting fees or accounting services, as well as company telephone calls or re-selling products you buy. Output tax is the tax that you impose on the goods and services provided by your company. You charge the tax for production and collect it from your clients.

Your input tax will then have to be assessed against your production tax: whether or not you have to pay HMRC cash depends on how much VAT you have charged and how much you have paid. For example, you can charge VAT for all your customers but pay VAT for all the items you buy from your suppliers. In most cases, you will owe HMRC the excess VAT money if you receive more VAT from your customers than you payout to suppliers and service providers. You will fill in a form to refund the money from HMRC if you shell out more in input tax than you raise in production tax.

Calculation of VAT

We all know that we’re paying for VAT, but we do not bother about how it is calculated. To understand the calculation of VAT, there are two ways.

  • VAT estimation on a net profit
  • VAT extraction from a gross profit

These are fundamentally different equations, but we mix them up regularly, so before we look at how to measure them, we’ll talk about what they mean.

Gross Profit Vs. Net Profit

Gross profit refers to the whole of something, while net, after some deduction, refers to a part of a whole. Net income for a corporation, for example, is the income generated after all expenditures, overheads, taxes, and interests.Net profit is also called revenue of the business.

According to the definition, Gross profit is the cost of goods sold, and net profit is the final revenue after deducting all the interests and taxes from the net profit. So by keeping this in mind, if we study VAT, we do the exact opposite, from a practical perspective. As a percentage of the net profit, we calculate the VAT and then add it to the net sum to meet the gross.

The outcome is the same since the net profit is the sum without the VAT, but as we had to add the VAT during the calculations, it made the starting point different. So, it’s better to think of the net as the sum before the VAT has been applied in terms of VAT calculations. When we think about calculating VAT in this way, it’s normally when sales invoices are prepared. They include:

  • The net selling value, the sum that belongs to the company
  • VAT, which is part of the HMRC,
  • The gross sum or complete invoice to be paid by the client

So, VAT is usually considered an unwanted tax, but all businesses have to pay this on their net figures. At 101Accountant provide accounting services, including VAT registration servicesfiling of VAT returns, and other services such as bookkeeping, payroll, and taxation.

What Are Payroll Services and How We Can Hire an Accountant for Them?

What Are Payroll Services and How We Can Hire an Accountant for Them?

When you have established a business, you must ensure that your employees are getting payments for their services. You must have an accountant to manage payroll services. It requires systematic handling and management for the proper record keeping of employees. It helps to make accurate calculations for salaries. Let’s discuss how we can hire an accountant for it.

What are Payroll Services?

We know that all the companies have many employees that perform different duties. They have different ranks and positions. They provide different services and have variable salaries. There is a big list of workers, and management of their records is a laborious task. Payroll service providers help to perform payroll calculations, tax statements, and many other matters for your company. Payroll accountant tackles withdrawals and deposits for your employees. They also handle pay and withholding garnishments and new-hire reporting. They make the process flow smoothly and make it easier to pay any type of employee. It makes the management easier for the payment of freelancers, part-time, full-time employees. They also print and deliver checks.

They also automatically check the signature, envelop stuffing, and direct deposit of checks. A company needs to have accountants because, without them, financial matters may become complicated. They know how to manage different financial situations. Some large run companies hire in-house accountants. Small companies may go for online accountancy facilities. Now latest technology has provided automatic software to handle such financial matters.

What should you Consider before Hiring?

When you are going to hire an accountant for your payroll services, you must consider some important points. You should never make hasty decisions. Many fake and incompetent people claim to be a professional accountant. You may find information about different accountancy services on the internet. You can also find others who are already getting these services. Whenever you are looking for services, you must consider the feature of the agency. For example, what kind of payment options they provide. You must see if they are offering multiple wage rates, PTO management, garnishment payments, unemployment insurance, and detailed reports of payroll. You must see whether it is easy to understand or not. It must have an easy-to-understand interface that you can use to run payroll functions and add employees. You must also compare the costs of different payroll services and look for the cheaper ones. You must also consider their reputation in the market.

Must be Competent and Expert

We know that communication is the key element in any job. It becomes too much important when a person is handling financial matters. The accounting nuances are difficult and complicated. An uneducated and untrained accounting expert cannot tackle or understand them. You can find many people who can make graphs and reports. The best accountants are those who describe the meaning in layman’s terms. Natalie Hoffman is the president of the payroll services company, HKP. He believes that the communication of an accountant is an important trait. From his point of view, your accountant should know how to communicate weaknesses, issues, and strong points of something. He must know the solutions to the problems. He should understand the potential issues that can disturb the mechanism of payments of salaries and know how to tackle them. A competent and expert individual can help you become safe from all kinds of financial issues.

Familiar with the Latest Technology

We have seen innovation in different fields. Technological advancement has transformed the way of doing different tasks. It has become easy to perform different jobs easily. Now it becomes possible to complete the work of days in hours. We can see innovation in the fields of medicine, healthcare, fashion, and others. Similarly, the accountancy department has also revolutionized. There are many innovative techniques for solving financial issues. Software development is helping all the fields. It helps to manage tasks automatically without human involvement. There is software to tackle accounting matters. It helps to accomplish many tasks efficiently. When you are finding an accountant, you must ask the candidate if he knows about the latest office technologies or not. You must see his readiness to embrace new technologies. Always make sure that the accountant is familiar with the latest techniques for bookkeeping. Payroll Services for Small Business must be up-to-date so that they may give benefits.

Consider Referrals and Reputation

We know that many companies are working in the field. They also need accountants, and they may have hired them. You may ask anyone who’s getting accountancy services. They will guide you or tell you about some renowned accountancy firm or a well-reputed accountant. They may refer you to some well-trained professional. When you are going to deal with someone, you must see his reputation. You must see how he has worked before. You should consider a professional with a strong track record. You should see his online reviews. You must ask others about his way of dealing with the problems. Payroll services are not easy to handle. They require sound training and expertise. Therefore, you should consider the professional that possesses complete knowledge in this field. He should know the latest techniques for solving financial issues.

You must necessarily consider the reputation. There may be some corrupt accountants who can make wrong calculations for their benefit. They may spoil the reputation of your company by delaying the processing for paying salaries. You must consider it essentially how the individual has worked before. It will help you avoid any mishap or bad experience.

To find payroll services in London is not a big deal. Many firms are working in this field. You may outsource your accountancy matters to any of such agencies. You may hire a personal accountant for payroll services. 101Accountant is a renowned organization that can help you solve all financial matters. They have a specialized and highly skilled accountant that can beautifully manage your payroll and other financial issues. They are familiar with the latest technology that can help in this field.