Wired Sussex OpenStudios

Accounting Presentation byChris Barnard & Laura Hughes

Overview - What will you get out of this?

• Sole trader VS Ltd company

• Tax efficient salary and dividends

• RTI - how it’s going. How Crunch has been recognised by HMRC for its RTI compliance

• Allowable business expenses overview

• Up and coming filing deadlines - 31st October for paper

• Free guides available to download from the Crunch website

• You are the business owner

• Self employed

• Individual pays income tax and NI

• Use losses against other personal income

• You are liable for whole loss if business fails

• Business is seperate legal entity

• You are shareholder and employee

• Company pays corporation tax

• Company uses losses against its own

past/future profits

• You have limited liability if business fails

• Improved perception from others

Sole trader VS Limited companySole trader Limited company

Tax efficient salary & dividends

• Entitled to share of distributable profits... called dividends

• Distributal profits = Profit after tax

• Don’t pay National Insurance... therefore, small salary to qualify for state benefits - no extra tax

• Lower rate of income tax

As shareholder:

Business travel

Entertainment

• Public Transport

• Subsistence

• Accomodation

• Mileage

• Entertainment Staff • Entertainment Other

Day to day expenses

Possible P11d benefits

• Professional Subscriptions

• Telephone & Internet

• Training

• Accountancy fees

• Home office usage

• Medical insurance

Day to day expenses

Other allowable expenses

• Eyesight test & glasses

• General office stationary

• Gifts

• Pension

• Charity donations

• Childcare vouchers

• Company formation fee

• Equipment

Day to day expenses

Real time information (RTI) - how is it going?

• HMRC teething problems• Annual scheme• Submission files

• Crunch software

• RTI compliant - recognised by HMRC

Important up and coming deadlines

• 31st October for paper assessment

• Register for self assessment if earn over £50,000 and still receive child benefit by 5th October

• 31st January - digital assessment

Free guides available for download

• www.crunch.co.uk/guides

• Expenses guide 2013 - 2014

• Limited company beginners guide

Thank you for your time today.

Do you have any questions?