We prepare your quarterly VAT returns ready for you to review and pay.

Prepare VAT

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time.

Bank reconciliation

Large Bank reconciliation

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter Pack

INDUSTRY NEWS  •  19 MARCH 2024  •  2 MIN READ

The Spring Budget updates for 2024 includes key tax changes for individuals and businesses, NIC adjustments, CGT, ISA allowances, and VAT shifts. We've compiled the essentials in this guide.

Spring Budget updates 2024

On the 6th of March 2024, Chancellor of the Exchequer Jeremy Hunt delivered his Spring Budget speech, outlining proposed adjustments to taxes, welfare, and public spending. In this guide we cover everything you need to know about the tax adjustments affecting small businesses and individuals. 

Personal tax changes (changes for individuals)

Reduction in National Insurance Contributions (NICs)

Starting the 6th of April 2024, employees will experience a further decrease in Class 1 NICs, dropping from 10% to 8%. Similarly, self-employed individuals will benefit from a reduction in Class 4 NICs to 6%.

In the Autumn statement, it was previously announced that self-employed individuals earning profits exceeding £12,570 would no longer need to pay Class 2 NICs. This change offers an additional advantage to sole traders.

By April 2025, a new regime for foreign income and gains will replace the remittance basis for tax-resident non-domiciled individuals, targeting those becoming tax resident in the UK after 10 years abroad, or 10 years of non-UK tax residency. 

The income threshold for the High Income Child Benefit Charge will rise to £60,000 from April 2024, with a gradual taper to £80,000. Plans to base this charge on household income by 2026 are also underway.

The higher rate of CGT on residential property will decrease from 28% to 24% from April 2024, while the lower rate will remain at 18%.

Tax benefits for landlords with furnished holiday lets will cease from April 2025, aiming to encourage longer-term rentals and address year-round housing shortages in tourist areas.

Individual Savings Account (ISA) Allowance

A new UK ISA allowance of £5,000 for investment in UK businesses will be introduced alongside the existing £20,000 ISA allowance.

Efforts are underway to simplify digital services, enabling taxpayers to pay Income Tax Self Assessment via instalments.

The VAT threshold will increase from £85,000 to £90,000 from the 1st of April 2024, with the de-registration threshold rising from £85,000 to £88,000.

UK Independent films with budgets of up to £15 million will receive extra support through the Independent Film Tax Credit.

Bulk purchases of dwellings will no longer qualify for stamp duty land tax relief from the 1st of June 2024.

The landscape of personal and business taxation in the UK is rapidly evolving, and it’s important to understand the ongoing implications of these changes. Whether you're an individual or a business owner, adapting to these shifts requires careful planning and compliance. Seeking guidance from an accountant can provide clarity and confidence amidst these changes. Beany offers a wide range of services to help with this and to take the weight of accounting off your shoulders. 

Beany Resources delivered straight to your inbox.

Industry news

Companies House are making some important changes over the coming weeks. It is important you are aware of these changes.

INDUSTRY NEWS  •  27 FEBRUARY 2024  •  3 MIN READ

Companies House are making some important changes over the coming weeks, if you’re a director or shareholder of a limited company, or are thinking about incorporating a limited company it is important you are aware of these changes.

Important upcoming changes from Companies House in March 2024

Companies House are making some important changes over the coming weeks, if you’re a director or shareholder of a limited company, or are thinking about incorporating a limited company it is important you are aware of these changes. Staying ahead of regulatory changes is paramount for ensuring compliance and avoiding unnecessary complications and potentially negative ramifications.

In this article, we’ll focus on the changes coming into play on 4 March 2024, but will also highlight other changes you can expect to see over the next few months and beyond. 

From 4th March 2024, Companies House is setting stricter criteria for registered office addresses. The use of PO Boxes will no longer be acceptable. Your registered office address must be a physical location where documents can be delivered and, importantly, come to the attention of someone acting on behalf of your company. Documents sent to that address must be able to be recorded by an acknowledgement of delivery. 

If you're using a third-party agent for your registered office; this may still be acceptable provided their address meets the new criteria set out above. Changing your address can be done online with your Companies House authentication code via the following link.

Failure to comply with these requirements could lead to your company being struck off the register. If an inappropriate address is identified, Companies House will default to a specified address for a 28-day period, after which, if not rectified, strike-off actions may be initiated.

If you are using a PO Box, or another address which does not comply with the new criteria, you should ensure you updated your address before 4 March 2024. 

Email Address Registration and Lawful Activity Confirmation

Another notable change coming into force from 4 March 2024 is the requirement for companies to provide a registered email address to Companies House. For existing companies this can be done in your next confirmation statement, while new companies will need to provide this as part of the registration process.

Additionally, during the formation of a company or in the next confirmation statement, shareholders must confirm the company is being (or has been) established for lawful purposes and that its activities will be lawful. This added measure aims to enhance the integrity of business operations within the UK.

Companies House will have increased authority to challenge or remove information deemed inaccurate, incomplete, false, or fraudulent presented on the register. This includes stronger checks on company names and the ability to annotate the register to highlight potential issues.

Non-compliance or failure to respond to formal requests for additional information from Companies House could lead to severe consequences, such as financial penalties, annotations on the company’s record, or even prosecution.

Companies House is also adjusting its fees from 1st May 2024 for various transactions, including company incorporation and confirmation statements. 

Digital incorporations will see a new fee of £50, while paper applications will cost £71. This adjustment in fees is part of a broader effort to modernise and streamline services.

The filing fee for confirmation statements will also increase to £34, up from £13 previously.

Full details about price changes can be found here.

Looking further ahead, Companies House is planning several long-term changes to enhance transparency and security. These include compulsory ID checks for company directors, members and owners; streamlining account options for small companies; and transitioning to software-only account filings. Moreover, efforts are underway to make limited partnership information more accessible and to strengthen the protection regime for personal information to safeguard individuals from fraud .

Your accountant can help you manage these changes, for example, if you need to change your registered office address, speak to your accountant about updating this with Companies House. 

At Beany, we are here to support you through these transitions, offering guidance and expertise to navigate the evolving regulatory landscape.

We're excited to share that we won silver at the SME London Business Awards

BEANY NEWS  •  9 FEBRUARY 2024  •  1 MIN READ

We're excited to share that we won silver in the Best New Business category at the SME London Business Awards 2024 overnight 🎉

This is an awesome achievement for Charlotte and the rest of the Beany UK team.

Beany wins silver in the SME London Business Awards 2024

Beany news

Unsure of which business structure is best for you? Our comprehensive guide covers the key differences between sole trader vs private limited company structures, with tips on deciding which one is right for you.

BUSINESS ADVICE  •  12 JANUARY 2024  •  1 MIN READ

Unsure of which business structure is best for you? Our comprehensive eBook covers the key differences between sole trader vs private limited company structures, with tips on deciding which one is right for you.

Sole Trader vs Private Limited Company - Which One to Choose

Are you wondering whether it's time to make the switch to another business structure? Or perhaps you’re starting a new business, and trying to figure out the benefits of being a sole trader vs a private limited company? Either way, it’s easy to have loads of questions - which is where our guide comes in! Through this guide, we cover:

Key differences between sole traders vs private limited companies

A checklist to help you make the right choice 

Remember, if you're still not sure, it's always a good idea to speak to an accountant (you can always reach out to us!). Everyone's situation is different, and there's no one-size-fits-all answer when starting or managing a business.

Sole trader vs limited company guide

One of the most common business structures in the UK, a sole trader is an individual who runs their own business and is self-employed. Examples include being a contractor or freelancer.
Read more: Business structures - what’s best for you?

A private limited company is also a common business structure in the UK. As its own legal identity, it is separate from its owners. The owners of limited companies are shareholders, and are not personally liable for the company's debts. A private limited company needs to meet compliance obligations such as filing financial statements, corporate tax returns, and confirmation statements. 

3. What are the pros and cons of being a sole trader or a private limited company?

Being a sole trader means you can be your own boss, and setting up is relatively easy and cost-effective. However, you will have unlimited liability (in other words, personal risk). It can also be difficult to grow your business.

Read more: Being a sole trader: the advantages and disadvantages.

4. What are the differences between sole traders and private limited companies?

A sole trader is someone who runs their own business as an individual and is self-employed. A private limited company is a separate legal entity from its owners and directors.

If you’re a sole trader, you’re personally liable for the debts of the business and can lose your personal assets if things go wrong. Limited companies, however, have more protection with limited liability.

Sole traders pay income tax on their profits and need to file self-assessment tax returns every year. A private limited company pays corporation tax on its profits, and needs to file confirmation and financial statements. 

While private limited company business structures come with more paperwork and costs, they also are eligible for more tax benefits, with more opportunities for funding and growth. and reputation.

Limited companies often have a more reputable reputation than sole traders.

5. Which business structure is more tax efficient?

It depends on your circumstances, and it’s always recommended to consult with an accountant. If you’re unsure, get in touch with a member of our team - we’re here to help!

6. Which business structure should I choose?

When deciding whether to become a sole trader or a private limited company, you need to take several factors into consideration. These include your personal liability, tax implications, the costs involved, the level of control you’d like over your business, and funding options. 

There’s no definitive answer to which business structure is better - it depends on your personal circumstances and preferences. Download our guide for more details.

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant would. ​We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

Sole trader vs private limited company business structures

Business advice

As a business owner, you may be eligible for Employment Allowance. In this guide, we’ll explain how it works and how to claim it.

FINANCIAL LITERACY  •  10 JANUARY 2024  •  1 MIN READ

Employment Allowance Explained

Are you a business owner that employs staff? If so, you may be eligible for a tax relief known as the Employment Allowance. Introduced to ease the burden of employers' Class 1 National Insurance liabilities, the Employment Allowance can be a significant aid for many organisations.

In this article, we'll break down what the Employment Allowance is, who can claim it, and how you can benefit from this relief.

The Employment Allowance is a scheme that allows certain employers to reduce their Class 1 National Insurance liability, ultimately saving money on their payroll expenses. It was implemented to support businesses and charities in their efforts to employ staff.

For the 2023/24 tax year, the maximum Employment Allowance is £5,000.  

If your total employers’ Class 1 National Insurance liability for the tax year is less than the maximum Employment Allowance, you can’t claim the difference.

Businesses and charities whose total employers’ Class 1 National Insurance liabilities for the previous tax year were less than £100,000 are eligible to claim employment allowance. Private individuals / families employing care or support workers are also eligible.

Keep in mind that if your business or charity is part of a group of connected companies, the group’s total employers’ Class 1 National Insurance liabilities for the previous tax year must be less than £100,000. Only one of the companies in the group can claim the Employment Allowance.

The following employers can’t claim the Employment Allowance:

Companies with only one employee paid above the Class 1 National Insurance secondary threshold (for the 2023/24 tax year this is £758 per month) where that employee is also a director of the company.

Public bodies or businesses doing more than 50% of their work in the public sector (i.e. local councils and NHS services), unless the employer is a charity.

The following employees can’t be included in Employment Allowance claims:

Those whose earnings are within IR35 ‘off-payroll working rules’.

Those employed directly by private individuals / families for personal, household or domestic work (i.e. gardeners, housekeepers, nannies, etc.) unless the employee is a care or support worker.

Additionally, for certain businesses, the Employment Allowance counts towards financial support from the government, known as ‘de minimis state aid’.  There is a limit to the amount of de minimis state aid affected businesses can claim over a 3-year period and, if they exceed the limit, they cannot claim the Employment Allowance.  The limits are likely to apply if your business is located in Northern Ireland and makes or sells goods or wholesale electricity.

The process of claiming the Employment Allowance is relatively straightforward. If you meet the eligibility criteria, follow these steps:

Use your payroll software(e.g., Xero payroll)  to submit an EPS (Employer Payment Summary) to HMRC.

At the start of the tax year or when you become eligible, set the 'Employment Allowance indicator' to 'Yes' in your payroll software.

From there, each time you run your payroll, the Employment Allowance will be automatically deducted from your total PAYE and National Insurance liability payable to HMRC. Remember that the deduction will continue until you reach the maximum Employment Allowance or the tax year ends, whichever comes first.

Did you know that you can claim the Employment Allowance for the previous four tax years as well? However, the eligibility criteria differ for each of these years.

Up until the 2019/20 tax year, the maximum Employment Allowance was £3,000. From the 2020/21 and 2021/22 tax years, the maximum allowance was increased to £4,000. So, if you've missed claiming the Employment Allowance for any of these years, don't worry; you can still reach out to HMRC for a refund of the employers' Class 1 National Insurance that you previously paid.

By taking advantage of this relief, you can free up funds that can be invested in growing your organisation or providing additional benefits to your employees.

However, navigating the Employment Allowance and its intricacies can be daunting, especially for busy entrepreneurs. That's where professional assistance, like the services offered by Beany, can be beneficial. If you're unsure about the Employment Allowance or need help with your tax matters, reach out to experts to guide you through the process and ensure you make the most of this financial relief.

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​​We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

Financial literacy

Are you ready to expand your team? Be sure to use our checklist for employing staff. Our comprehensive guide will ensure you’re compliant with all necessary regulations.

BUSINESS ADVICE  •  21 DECEMBER 2023  •  1 MIN READ

The ultimate checklist for employing staff

For small businesses, employing your first staff member is a big milestone. It's a significant decision, and finding the right people is important. Employees can increase your business’ productivity, diversify your skill set, and reduce your workload, leaving you free to concentrate on other essential tasks. However, it also brings new obligations and responsibilities. 

To help you navigate the process of employing staff,  we've created a free comprehensive checklist. This valuable resource outlines all the important things to keep in mind, and the steps you need to take when making your first hire.

Employing staff checklist

This checklist is applicable to all types of business entities, including companies and sole traders interested in employing staff. The contents specifically cover the hiring process, regardless of whether they’re full-time or part-time. If you intend to hire contractors or other self-employed staff, this checklist won’t be applicable. 

2. How do I calculate and deduct income tax from my employee's salaries?

You can use HMRC's online tools (or payroll software such as Xero) to calculate income tax based on each employee's tax code and earnings. You need to deduct the appropriate amount from their gross pay before distributing their net salary.

NI is a social security contribution that both employers and employees must pay. It has different categories and rates. Employers deduct their employees' NI contributions from their gross pay using PAYE. 

As an employer, you must report and pay employer NI contributions to HMRC along with your regular payroll submissions.

4. When do I need to submit payroll information to HMRC?

You must submit payroll information to HMRC on or before each payday. This includes details of employee earnings, deductions, and taxes through Real-Time Information (RTI) reporting.

5. What are the statutory leave entitlements for my employees?

 In the UK, employees are entitled to annual leave (a minimum of 28 days, including bank holidays), maternity/paternity leave, sick leave, and shared parental leave, amongst others. Depending on specific circumstances, some of these may be paid.

6. Are there any tax incentives for employers in the UK?

Yes - for instance, the Employment Allowance, which reduces the employer's NI liability. It’s best to ask your accountant if your business qualifies for any incentives.

7. Do I need to provide workplace pensions for my employees?

Yes, you must automatically enrol eligible employees into a workplace pension scheme, and contribute to their pensions. This is known as auto-enrolment, and it’s vital when employing staff. If you’re unsure of how this works, be sure to check with your accountant.

8. What records do I need to keep as an employer for tax purposes?

When employing staff, you need to maintain accurate records of your employees' earnings, taxes, and NI contributions. It’s also important to keep a record of pension contributions and other benefits.

The ultimate checklist for employing staff (free download)

Payment on account is advance payment self-employed taxpayers make towards their expected tax bill for the next tax year. This guide covers how to calculate these payments, pitfalls to be aware of, and more.

FINANCIAL LITERACY  •  14 DECEMBER 2023  •  1 MIN READ

What is payment on account for self-employed

Payment on account is advance payment self-employed taxpayers make towards their expected tax bill for the next tax year. In this article, we cover who these payments apply to, how how to calculate these payments, as well as pitfalls to be aware of.

Payment on account is a payment made in advance towards next year’s expected tax bill, helping the taxpayer spread the cost of the tax bill over the year. 

The self-assessment payment on account due dates for the 2022/23 tax year (which ends on the 5th of April 2023) are the 31st of January 2023 and the 31st of July 2023. The balancing payment is due on the 31st of January 2024 (the same date tax returns are due for filing).

Who does ‘payment on account’ apply to?

Payments on account are payable by all sole traders and self-employed individuals, in respect of their income tax (including your Class 4 national insurance contributions), unless the following apply:

Your last self-assessment tax bill was less than £1,000

You paid 80% or more of your tax bill at source via your tax code, or by your bank deducting the tax due on your savings interest

This is your first year of work as a sole trader or self-employed (you only pay payments on account for year 1 onwards). 

For regular PAYE employees, employers are responsible for sending their taxes to HMRC.​

As a sole trader, there are two drawbacks when simply paying the full amount on your tax return by the payment due date:

HMRC doesn’t receive payment for at least 9 months after the income is earned

It can be challenging to collect enough cash to pay tax by January - the date can sneak up on you!

With payments on account, you don’t need to pay tax every month, nor do you need to come up with a lump sum in January. Instead, you pay your tax in two instalments, and any additional tax will be due as a balancing payment along with your tax return on the 31st of January following the end of the tax year.

If you end up paying too much, a refund will be assessed by HMRC when you file your tax return.​

How are Payments on Account calculated? 

Each payment is half your previous year’s tax bill. 

If your tax bill for 2021/22 was £6,400, you will need to pay £3,200 on the 31st of January 2023, and £3,200 on the 31st of July 2023. This goes towards your 2022/23 tax bill. 

In this scenario, if you prepare your tax return for 2022/23 and your tax bill turns out to be £7,000, you will need to pay the additional £600 in January 2024. 

If, on the other hand, your tax bill for 2022/23 ended up only being £6,000, HMRC would issue a refund for the £400 overpayment when you file your tax return. 

Your tax liability won’t always stay the same - some years, it could go down (due to your business profits or other income), or the tax relief you're entitled to could go up.

If this happens, you can ask for your payments on account to be reduced. This can be done via HMRC’s online service, or by filling out a postal form on-screen, printing it, and sending it in the post. To use the online service you'll need to have a Government Gateway user ID and password. You can create a user ID while using the service.

Find out more about reducing your payments on account here.

If the 2021/22 tax year is the first year you’re operating, you won’t have paid taxes for a while. It can be daunting to a tax bill for 2021/22, followed by another 50% of this on the 31st of January 2023. 

Assuming you have a March year-end and you’re not VAT registered, let’s see what your first year in business will look like:​

1. You started your business in July 2021. 

2. The tax year ends on 5 April 2022 - you haven’t paid any tax for this whole period. 

3. Your tax return for 2021/22 is due on the 31st of January 2023. 

18 months after you first started your business, and you suddenly need to pay 100% of your tax bill for 2021/22, as well as an additional 50% of the value of your 2021/22 tax bill towards 2022/23.

At Beany, we’re here to help you handle your self-assessment payment on account by providing you with the expected amounts you’ll need to pay and the due dates. To have enough time to plan for tax payments, it’s important to get your financial information to us as quickly as possible.

What happens when you file your tax return? 

When we complete your tax return at the end of the financial year, we include details of your self-assessment payment on account. A final refund or tax bill will be calculated after considering the instalments. If you want to learn more about how this is done, get in touch with us!​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant would. ​​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

Payment on account: A guide for self-employed

As a business owner, you need to know how workplace pension works. Get expert insights today and understand your responsibilities as an employer. 

FINANCIAL LITERACY  •  29 NOVEMBER 2023  •  6 MIN READ

As a business owner, you need to know how workplace pension works. Get expert insights today and understand your responsibilities as an employer.

Workplace Pension: How Does It Work

Saving towards retirement is important and many people in the UK don’t have adequate pension savings. The State Pension alone may not be adequate to support a comfortable standard of living.  

Workplace pensions help workers save towards retirement by automatically putting a percentage of their earnings, together with contributions from their employer, into a pension scheme.

Under the Pensions Act 2008, all employers must provide a workplace pension scheme and all eligible workers must be auto-enrolled into that pension scheme.

Compliance with the Pensions Act 2008 is monitored by The Pensions Regulator.

When does workplace pension duties start?

Your duties as an employer begin on the start date of your first worker.  From this point onwards, you must assess your workers, provide a compliant workplace pension scheme and make the necessary contribution payments, provide employees with the relevant letters and submit declarations to The Pensions Regulator.

Even if you think you won’t need to put workers into a pension scheme, you still have duties as an employer.

Setting up a workplace pension scheme can take some time, so it’s a good idea to do this as soon as you decide to hire your first worker.

You need to choose a scheme that is auto-enrolment compliant.  You may want to find a scheme yourself or you may need to get help from a pension adviser or financial adviser. The Pension Regulator has a list of workplace pension options available if you decide to choose a scheme yourself. 

There are many pension schemes suitable for small employers.  Some schemes have set-up and/or management charges payable by the employer.  Other schemes are free to set-up and management charges are paid from the workers’ pension pots.

"Worker" is a broader concept than "employee" as it includes anyone with a contract to perform work / services personally (for example, agency workers) who is not undertaking the work as part of their own business.

There are different categories of workers:

Eligible Jobholders - aged 22 up to state pension age, working in the UK and have qualifying earnings over the "earnings trigger".  These individuals must be auto-enrolled into the pension scheme.

Non-eligible Jobholders - aged 16 to 21 or state pension age to 74, working in the UK and have qualifying earnings over the "earnings trigger". These individuals can opt-in to the pension scheme.

Entitled Workers - aged between 16 and 74, work in the UK but whose qualifying earnings are below the "earnings trigger".  The individuals could become eligible jobholders if their earnings increase (even if temporarily due to overtime pay and/or bonuses).

Directors, i.e. those registered as such at Companies House rather than those in title only, are not usually classified as workers and are therefore not subject to auto-enrolment.  However, if the director has a contract of employment AND at least one other person (director or employee) also has a contract of employment then the director is classified as a worker and is subject to auto-enrolment.

The earnings trigger for joining a workplace pension is £192 per week / £833 per month / £10,000 per year.

Contributions are generally calculated on qualifying earnings, these are earnings between:

The lower level of £120 per week / £520 per month / £6,240 per year, and

The upper level of £967 per week / £ 4,189 per month / £50,270 per year.

Sign up to Beany accountants!