As accountants we work together with our customers. We try our best to support and guide our customers. We have a few top questions which often pop up. Here’s the top 6:
1) How much is my business worth?
Many business owners are keen to know what their business is worth. All the hard work that goes into running your own business is hard to see when you are on your own. When valuing a business we look at several things. The assets of the business are the starting point, property vehicles, furniture, and equipment. The current value of these form part of the total value of the company. Any amounts owed to the company and amounts owed out to suppliers, loans, and taxes are deducted.
The next step is to look at the trade of the business, the sales, costs and profitability. These are all used to establish the historical and future results. If you have contracts with customers these are considered as well. With all these factors in mind we can draw a value of your business.
2) Will you help my business grow?
Working with an accountant who understands you and your business has more benefit than purely preparing end of year accounts and tax bills. Annually or more frequently we work with our customers looking at how the business can develop, moving into new lines or expanding current lines. We look to help support our businesses and often find that the first five years of any business are the most involved, helping clients to establish themselves and build a good base for their future.
3) Can you save me tax?
Having an accountant is the best way to increase your chances of paying less tax. Using our expertise and knowledge we can ensure you receive all the best tax reliefs available. We work closely with all our customers to understand them and their businesses. We look to support our customers and feel that we work together to achieve the best possible outcome.
4) When do I pay my tax?
Self-employed or tax return only clients generally pay their tax by the 31st January following the end of the tax year (5th April). If your tax bill is over £1,000 you will be asked to pay your tax bill in full and then half again ready for the next year. This is known as a payment on account. If your bill is over £1,000 you will regularly pay 50% of your bill in January and the other 50% in July. This can be a big shock the first year but once you are in the pattern it can help spread the cashflow.
Companies always pay their tax nine months and 1 day after their end of year, so 31st March year end companies must pay their tax on or before the 1st January following the end of year.
5) Can you get me a tax refund?
We frequently are asked this question. There are two parts to the answer:
a) You can only get a refund if you have paid or had any tax deducted.
b) If you have paid or had tax deducted we can look to see if the tax you have paid is more than the tax that should have been paid. For this we would need to look at your overall income, and gains for the year.
6) I am selling a house, do I pay tax on this?
If you build a home and live in it personally you may not be liable to any tax on the sale of the property and profit made if it has been your principal private residence (PPR).
If you build a property and do not intend to live in or you have a main residence you may be liable to pay tax on the profit made. The profit made on a sale of a residential property(which is not your PPR) is calculated after deducting costs, including legal and estate agent fees. This profit is then used to decide if any tax is payable.
If any of these questions are something you feel you would like help with, we will aim to help you get the right answers – contact us here.