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Is it worth outsourcing payroll for small clients?

R
I'm thinking about outsourcing payroll, but unsure if it's worth it for smaller clients.

Has anyone here done this?
  • Which providers do you use?
  • How do you charge clients for it?
  • Do you retain control or let the provider deal directly?
  • Any issues with accuracy, deadlines or client complaints?

Would love to hear what’s worked (or not worked) for others before I commit.
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Use of Registered and Unregistered Documents in Europe, USA, Australia, and Canada

A
Hello everyone,

I hope this message finds you well! I wanted to share some important information regarding the use of registered and unregistered documents across Europe, the USA, Australia, and Canada. Whether you're dealing with legal, academic, or business documentation, understanding the nuances of these documents can be crucial for smooth operations and compliance.

Registered Documents:
Registered documents are officially recognized and often come with a certificate of authenticity or registration. Examples include trademarks, patents, and certain types of business licenses. These documents enjoy a higher level of legal protection and recognition, making them valid for use in legal contexts and business transactions across the mentioned regions.

Unregistered Documents:
On the other hand, unregistered documents, while still valid, may carry some restrictions depending on the context in which they are used. Examples include agreements, contracts, and informal letters. While these documents can be legally binding, their enforceability may vary. It's crucial to ensure that they meet the local law requirements of the country where you intend to use them.

General Considerations:
1. Always verify the specific requirements of each country, as legal standards can vary.
2. Ensure that transactions or agreements comply with local guidelines to avoid any complications.
3. Consulting with a legal expert in your jurisdiction can provide clarity and peace of mind when navigating these documents.

If you have any questions or need further clarification on the topic, feel free to reach out. Let's keep the conversation going!

Best regards,
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Time to Pay over 15 months – is it possible with HMRC

L
Hi,

We’re a small company with a £7K PAYE bill due this July (not overdue yet).

Due to serious cashflow issues, we’d need to set up a Time to Pay plan over 15+ months.

I know HMRC typically offers up to 12 months — has anyone had success requesting longer terms?

If so, could you share what kind of info or documents did they ask for?

Just trying to be prepared before calling.

Thanks for any tips or experience!
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UPS brokerage fee

Yana Borda
UPS are charging me £1,119 of brokerage fee, government charges + VAT to import personal belongings from Dublin to UK, when the shipment should have been exempt from custom duty due to transfer of residence relief. I wasn't aware I needed to file the ToR1 form so filed it late, which is fine happy to pay the £277 of duty and claim it back however UPS is charging over £700 + another £200 of VAT on top of that which is not recoverable when I should have been exempt in the first place. The total value of the parcels declared were only £700 to make things worst.


Can I dispute the amount any way?
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What is the role of seller finance in a business acquisition?

John Paulson
I recall reading a BBC article in Q1 2021 which said that a consortium of international investors agreed to purchase Edinburgh Woollen Mill, Ponden Homes and Bonmarché from Philip Day, but that Day would loan the group the funds they needed to facilitate the acquisition.

Why do sellers agree to offer the buyers the capital they need for the deal? Are they just hoping that, if the buyer defaults on the loan, they can take control of the business back while cashing the interest payments, and if the company files for administration, as a major creditor, they can maximise their claims on the company's assets?

Or could it be that they can't raise enough capital to sell their stake in the business, so might maintain a minority stake in the business (I think this might have somewhat been the case with Walmart and Asda, as they haven't completely divested from the business, although I don't think they resorted to seller finance) by lending capital to the buyer to facilitate a majority takeover?

Are they hoping that you can buy them out over time with incoming revenues?

Are the interest payments tax deductible and that's why they do it?
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Are more clients finding creative ways to avoid paying?

DebtRecoveryUK
Curious if others are noticing the same pattern. Clients are becoming increasingly inventive when it comes to delaying or avoiding payment.

Recently I have seen cases where:
  • Minor disputes are raised just before payment is due
  • Clients go silent as soon as the work is completed
  • Payment terms are suddenly reinterpreted
  • Final payments are withheld over vague technicalities
This is not limited to one industry. It seems to be happening across professional services, trades, manufacturing and retail.

Is this just down to tighter cashflow, or are some businesses becoming more confident in testing what they can get away with?

How are others dealing with this? Are you chasing it in-house, involving third parties, or writing it off?

Genuinely interested to hear how others are managing this shift.
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Local stall events business, pre start-up, needing advice

My idea -
To organize and run local stall events.
--------------------------
~ I have viewed a unit, but unsure of whether it's in the right place.
~ I'll assume that people who have a stall will be bringing their items by car.
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+Positives of this unit
1) Location is where I want to be (in the town centre).
2) Unit is a good size for starting out.
3) Rent is manageable.

-Negatives
1) No street parking.
2) Nearest parking is, a paid car park, 100 yards away.
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Paying to park is not my main worry, as the stall holders can take that money out of what they sell. My main worry is the distance from the unit to the car park.
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Do you think this will work or should I be looking for a unit elsewhere?
--------------------------
I have considered getting foldable trolleys for stall holders to use. My thinking is, for them to collect them the day before their event, so when they park, they'll have it in their car ready to use.
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Renting out a food trailer

R
Hello, I'm exploring the possibility of purchasing a food trailer to then let out to businesses. For clarity, I'm absolutely awful in the kitchen so would never consider running a food business myself, but I like the idea of offering the facility to others who may not be in a position to buy their own out right, or who are testing a concept etc.

What I'm struggling to understand, what my research hasn't told me thus far is, how viable is this in terms of demand? Do the majority own their own facilities?

I have come across a few companies offering this service and I'll continue my research in the meantime, but if anyone has any experience, opinions, or resources they can point me towards then I'd be really appreciative.

Many thanks in advance 🙂
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ReClaiming VAT on business expenses

P
Hello UKBF member,

Question 1- As a business claiming VAT on business expenses, where the invoice shows a VAT number is acceptable. HMRC seem to have a provision for a business working from home to claim pro rata of 20% VAT on the total household utility bill, based on the space occupied by the business in the house. Go to gov.uk and search for Reclaim VAT on business expenses
Has anyone exercised it? How far back ( in years/ months) can I claim a pro rata VAT on utility bills if my business is VAT registered since July 2023 but is overall registered and operational since 2017?

Question 2 - if VAT on accountancy fees can be reclaimed why not VAT on monthly accounting software/ tool like a Xero be reclaimed or SaaS software overall like for daily emails etc.?

Question 3- is there a comprehensive list of what can or can't be claimed in terms of VAT while filing returns? I have been looking at different information online since yesterday and they seem to contradict and confuse further.

Thank you.
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Best Tools and BD Approaches for Recruitment Agency Start Up (Embedded/RPO Focus)

M
Hi everyone,
I’m in the early stages of building a recruitment agency that will be mainly focussed on the tech industry. I would love to hear from those with experience in embedded recruitment services or RPO (Recruitment Process Outsourcing).
  • Tech stack & tools: What are the must-have tools or platforms you’d recommend for sourcing, outreach, CRM/ATS, and reporting?
  • Business development: What approaches have worked well for you in prospecting, lead generation?
  • Lessons learned: Anything you wish you knew when you started offering these services?
Any insights, resources, or war stories would be hugely appreciated. Thanks in advance!
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  • Solved
How should tax be paid on this side hustle?

M
As a full time employee I am paying national insurance and tax deducted from my salary.

I am putting £150 approx per month into a separate bank account which comes from a passive income. AdSense revenue, Stripe payouts.
Then out of that account comes my expenses like website server costs, Google business apps etc. whatevers left could be considered profits, although I don't use these for personal purchases only anything related to the side hustle.

It sounds like I need to register for a self assesment tax return, so presumably I will be expected to cough up my earnings some time after April 2026 assuming the profits exceed £1000 which at this rate, will.

Do I just cast aside anything related to employment and just pay tax on what I'm getting profit wise from this? How should I work out the tax, is it a percentage of the earnings? When I register for self assessment, what do I send in april, a full list of ongoing and outgoings like a bank statement?

I am very new to this. Not accounting minded but doing this simply because it's obviously a legal requirement for paying tax on earnings.
I don't want to register for something, they expect something in 2026 and because I haven't sent anything this year they send a penalty.
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Letter beofre Action to HMRC - does it really work?

T
Seen this posted on LinkedIn - anyone know if it actually works in real life (personal/client experience)?
Still amazes me how many accountants don’t know this:

This is the process you need to follow and your account should know this:

Send letter immediately after tax year and CIS rebate is known. This letter must give them 21 working days to pay and say that failure to pay may escalate the process.

They will not respond.

After 21 days send a ‘letter before action’ to [email protected]. They will acknowledge this within 24 hrs and you will have this sorted within 14 days.
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Domestic reverse charge

RSmith2.
We've recently setup a construction company. VAT registration has been applied for but we need to invoice our contractor in the meantime. The reverse charge applies so once we have our VAT number we will be referencing the applicable rate but not charging VAT. I understand I can't reference this until we are registered and have received our VRN. My question is whether I need to reissue those invoices once we have our VRN, for accurate records for us and our contractor. I've read that if we were actually charging VAT, then we could send an initial invoice with the 20% markup, without referencing VAT, so that we're paid what's due (or would be due) following VAT registration, and then we'd need to issue a new VAT invoice. I've also read scenarios where VAT is invoiced separately at a later date. I'm just unclear if the revised invoice is necessary when reverse charge applies, because the amount due is no different.
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Accounting and Tax questions from a new Startup owner

S
Hello,
I'm new to this site and looking for some help and guidance on an Accounting & Tax related topic.
I registered my software development business about 4 years ago however it has been dormant ever since, whilst i was building it. Over the course of the past 4 years I did incur expenses for different tech tools and licensing costs etc.... and I kept a list of expenses. Now I am about to launch my product and go live and officially change my business to Active. I have a couple of questions regarding Tax and Accounting, and I'm hoping someone here might be able to help. ( I'm new to all this, so please don't judge).
1. Given my company was dormant for the past 4 years, can I still claim or register my expenses from the past 4 years, and potentially claim towards a tax rebate? If so, is there a time limit?
2. I'm investing my own money in the business and I won't be making any money or profit at the beginning. Could I file my own taxes, even though it's only going to be showing a loss? Or should I get an Accountant? For basic accounting needs (such as mine) how much would an Accountant cost?
3. Anything else I should know but haven't covered above? Perhaps first-hand experience from other business owners?

I truly appreciate everyone's help and input. Thank you!
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Can ACCA member run non-accountancy firms without PC?

S
Hi all,
First, i would like to apologies if the similar question has been asked before. Im ACCA active member (without practice certificate) and running side businesses under limited companies mainly in construction, building, property investment company (SPV) and development company.

In each of these companies, Im acting as only director as well as shareholder (one of those companies have other friend join as shareholder but remaining is just me).
At one side, I work in industry as accountant for couple of years now.

Earlier, I have questioned regarding opening accountancy firms in other thread. But my current concern is regarding my ACCA membership as well as my role in multiple limited companies, before I obtain my practicing certificate.

I came across ACCA article explaining about public practice and term “principal”

I am aware for running accountancy and related financial firm, I may need practice certificate, but what about for non-accountancy firms like the one I have (listed above)?

I believe none of those companies provide any services related to accounting/tax/audit.
My final question is, can an ACCA member (without practice certification) own multiple limited companies and be as director as well as shareholder (majority) for non-accountancy firm within the UK jurisdiction? Or I might misunderstood the statement related about “principal” is linked to accountancy firms only?

Highly appreciate your kind response and help

Regards,
Sim
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Accounting firm with ACCA membership only (not ICAEW)

S
Hi,
Hope everyone is doing fine
I am having few years experiences as accountant in few different industry and completed all ACCA papers (some with exemptions from my undergraduate) and joining membership of ACCA. I am planning to run my own accounting firm next year. However, few things have come up to my mind and I have been searching around through websites and asking friends but no straight answer as they mostly have no planning to have the firm yet. Firstly, I would like to apologize if similar thread has been discussed earlier and would like to start new here.
My questions are:
1. Does to open an accounting firm in the UK (England), I can be the sole director and shareholder, meanwhile the remaining will be the accounting staff to manage the tasks? As I have no idea who will be other qualified accountant yet to join
2. Is it sufficient to have the firm running with only me being ACCA member and using their logo, without having ICAEW membership? Because I have seen most of accounting firms have ICAEW logo and being known as 'Chartered Accountant'.
The reason I am opt for it because ICAEW is slightly pricey over ACCA, and I believe they do not provide certain exemptions for ACCA member (If some of ACCA exams are being exempted too), which means I will need longer time to complete it plus the training by ICAEW. To add, my services will be mainly for bookkeeping, tax services (tax filing, tax planning and strategies, inheritance tax and some other tax services included) and finance/mortgage advices, not thought for public auditing services yet.

I highly hope for some responses

Regards
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Dilemma: Declaring gross income or net income with cash basis method

Q
Hi,

I'm an artist represented by an agency that takes 35% of my earnings. Up to now the agency invoiced the client for the full amount of the project and then I invoiced the agency for my cut (so total £- 35% commission). I have no record of the full £ in my invoices or anywhere else, my invoices only show my cut. The payment received on my bank account is my cut.

The agency is now changing their way of doing things in order to connect the artists directly with clients. So they will invoice the clients (on my behalf) for the full £ and they will send me a separate invoice for their 35% commission. All good but the problem is, I'm still getting paid the same as before! I only receive my cut in my bank account.

How do I record these transactions now if I'm accounting with the cash basis method?

Option 1 (the easiest way):
Keep recording my payments as I receive them and attaching the full £ invoice and my agency's invoice to each transaction as proofs. When I file my self assessment I only declare what comes in and out of my bank account as usual (so total £ - 35% commission).

Option 2:
I manually record a payment for the full amount and record the agency commission as expense. This would be more complicated for me as I use an accounting app that automatically syncs with my bank account. So I would have to go and delete every received payment and create new ones.

At the end of the day the math is the same, my taxable income will be the same. If it is relevant at all, I'm not earning enough to pay taxes yet, only NI contributions.

I hope I've explained myself properly, English is not my first language
😊

Thank you!
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Limited company question regarding legal owner of animals as assets.

L
Hello, I am in the process of changing over to a limited company from being self employed. I run an animal breeding business the animals are currently owned & registered to myself they are all registered with a governing body I.E the kennel club in my name. Do I need to create an account under my LTD companies name & legally change them over to being officially owned by the LTD through the Kennel Club? Any help or guidance would be greatly appreciated. Thanks
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Do software upgrades mean that licence purchases count as opex rather than capex?

John Paulson
This is from an article from the website of the Association of Taxation Technicians (ATT):

If a lump sum payment is made for a licence it will be necessary to consider whether the licence will have a sufficiently enduring nature to be classed as a capital asset. This requires consideration of both the function of the software and how long it will last. As noted above, HMRC will generally accept that a payment is revenue in nature if the useful life of the software is expected to be less than two years. However, they will not accept that software has a limited life solely because new updated versions are released at intervals of less than two years – the question is whether the business actually trades up to the new version at sufficiently short intervals.
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To me, this means that if I buy a licence for a software application, if I keep on upgrading the software application in line with the release cycle, HMRC interprets that licence as being a revenue expense, or opex, rather than a capital expense, or capex. Have I got that right?
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What government / third sector / private industry resources exist in the UK for those looking to establish a startup / SME / early stage?

John Paulson
I know that Y Combinator in the US offers www.startupschool.org for e.g.

The US Small Business Administration, also in the US, offers www.sba.gov/business-guide, which pretty much covers the FAQs that those seeking to establish a startup or small business or early-stage business might have, including step by step guides such as www.sba.gov/business-guide/10-steps-start-your-business

I believe in the UK, there are Multiply courses that help newly registered small business owners understand how to run the numbers for their respective business.

There is also, within the UK, www.startuploans.co.uk/support-and-guidance/business-guidance/staffing/skills-gap-analysis, www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/business-loans etc

There is also helptogrow.campaign.gov.uk/, but not sure if it's still available under the incumbent government.
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