Missed the Self-Assessment Deadline?
Don’t panic, but don’t delay! Filing late comes with penalties, but leaving it even longer could cost you more. On top of the £100 late filing penalty, unpaid tax starts accruing interest, and after 30 days, there’s an additional 5% late payment penalty. The longer you wait, the more it adds up: • 3 months […]
Merry Christmas from Ian Richmond Limited
We would like to thank our clients for their continued support during 2024. We truly appreciate it and are looking forward to a great 2025 with you. Our office is now closed for the Christmas break and will reopen on 2nd January. So until then, we wish you all a wonderful Christmas and a prosperous […]
Christmas Bonuses, Parties & Trivial Benefits
As the festive season approaches, it’s time to plan those Christmas perks for your team. Here’s a quick guide to staying on the right side of HMRC when rewarding your staff: Christmas Bonuses Cash bonuses, or vouchers that can be exchanged for cash, are considered earnings. These must go through payroll and are subject to […]
Understanding Your Responsibilities as a Director of a Limited Company
As a director of a limited company, your role comes with significant responsibilities that go beyond simply running the business. You are legally accountable for ensuring the company operates efficiently, ethically, and in compliance with all relevant regulations. Here’s a breakdown of key duties: Act in the company’s best interests: Every decision you make must […]
The Advantages of Cloud Accounting
As businesses evolve, so must the tools they use. Cloud accounting is one of the best innovations for modern finance management, offering flexibility, security, and efficiency in one package. Here are 10 ways your business can improve by using cloud-based accounting software: 1. Real-Time Financial InsightsNo more waiting for end-of-month reports! Cloud accounting provides real-time […]
It’s our Birthday!
On this day (28.10.24) two decades ago Ian incorporated his sole trade business to form Ian Richmond Limited. Now, 20 years on, we’re proud to continue serving businesses and individuals in Wolverhampton, across the West Midlands and further afield. Of course we couldn’t have reached this milestone without the support of our amazing clients, so […]
The Flat Rate Scheme for VAT: Is It Right for Your Business?
If you’re a small business looking for a simpler way to handle VAT, the Flat Rate Scheme could be a good option. Under this scheme, you pay a fixed percentage of your turnover as VAT, which might simplify your accounting and reduce paperwork. Advantages: Simplicity: Easier to calculate VAT due, with no need to track VAT […]
Understanding Prepayments & Accruals
Understanding Basis Period Reform
The Basis Period Reform is a significant change for sole traders and partners, designed to align taxable profits with the tax year (6 April to 5 April). Previously, the profits taxed were based on the business’s accounting year, which didn’t always match the tax year, leading to complexity and confusion for both taxpayers and HMRC. […]
When is a Statutory Audit Required for a Limited Company?
In the UK, a statutory audit is generally required for limited companies if they meet two out of three key criteria for two consecutive years: The Criteria: Annual Turnover: Exceeding £10.2 million. Balance Sheet Total: Exceeding £5.1 million. Number of Employees: More than 50 employees on average during the financial year. Important to Note: If […]
Cash Accounting vs Accrual Accounting: What’s the Difference?
When running a business, it’s crucial to understand how to track your finances. Two common methods are cash accounting and accrual accounting. Here’s a simple breakdown of what they are and when each might be used. Cash Accounting: How It Works: With cash accounting, you only record income and expenses when money actually changes hands. […]
Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA)
Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is a key change in the UK tax system that will affect self-employed individuals and landlords. Originally set for earlier dates, it is now scheduled to come into effect in April 2026. What Is MTD for ITSA? MTD for ITSA will require self-employed people and landlords […]