Recent content by TimCaprica

  1. TimCaprica

    Inside IR35?

    The holiday and sick pay definitely make it sound a lot like employment but more broadly IR35 status comes down to the level of control that the client has over the way you work. If you are cautious - a better option (assuming there are some good arguments for being outside IR35) might be to...
  2. TimCaprica

    Accountancy Practice

    You can definitely start planning before you get a practising certificate! I was in a similar-ish position in 2011. I'd been working as an accountant, it was in public practice but it was in a specialised area (acquisition due diligence). At the time I didn't have a clue how to go about the...
  3. TimCaprica

    VAT return - box 7 value

    What you often find with accounting software that prepares the VAT for you is that they only put the VATable items in box 7. So Box 4 is nearly always exactly 20% of the Box 7 (unless there are some 5% transactions). I'd agree with the above though. As long as box 4 doesn't exceed 20% of box 7...
  4. TimCaprica

    Tax on dividends, how much?

    If you want to understand the dividend tax credit bit I've tried my best to explain it here - http://www.capricaonline.co.uk/guides/dividend-tax-credits-explained/
  5. TimCaprica

    CIS

    If your turnover exceeds £30k you might be able to escape the CIS madness (though will still have to deduct it from your own subbies) by applying for gross status - https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/gross-payment-status
  6. TimCaprica

    Recording first wage in accounting software

    Xero by default should have all the accounts you need. Assuming you haven't used Xero for Payroll reporting to HMRC you need to do a manual journal (which can be scary for non-accountants). You would make a journal that looks like this: Debit Salaries - Your gross pay (eg. £1,000) Debit...
  7. TimCaprica

    How to claim a proportion of household expenses if you share bills with a partner

    I don't think you will find anything about the split between spouses (because there are no written rules on this).
  8. TimCaprica

    What amount of tax is paid on company profits, salary and dividends?

    The main difference between Sole Trader and Limited Company (taxwise at least) is that as a Limited Company you can take the money out as dividends and avoid paying any National Insurance. You can also be clever about how much money you take out the Limited Company. So if you earn profits of...
  9. TimCaprica

    How to claim a proportion of household expenses if you share bills with a partner

    Hi, Just a quick proviso, you can only make a claim like this if you are self-employed. If you trade through a Limited Company the rules are completely different. But assuming self-employed ... I don't think you need to worry about the split between your wife and yourself. I'm 90% confident...
  10. TimCaprica

    Multiple Trading Names / 1 Bank Account

    I'm not sure if it's policy or if they've just been unusually nice to us but I have a client banking with HSBC who has multiple trading names. Not as many as 10 but at least 4. I find it's very common to buy something from a branded website and to see a very generic business name eg "Online...
  11. TimCaprica

    Check my working re dividends before hitting higher-rate threshold

    Your workings look correct to me. The only consideration I would add is whether the optimal salary should be £10,600 (and dividends appropriately lower). This is a better salary if you don't have employees using up your £2,000 Employers NI allowance.
  12. TimCaprica

    Can Director Business Loan be added yearly?

    I see. Plenty of IFs there. I think the link I sent covers that.
  13. TimCaprica

    Can Director Business Loan be added yearly?

    Why's that? I didn't mention catchup for the months not paid this tax year but are you thinking of something else?
  14. TimCaprica

    Can Director Business Loan be added yearly?

    Hello, You are right in that you can do this a loan repayment will not have any tax consequences. What I would do is make sure you pay the £1,000 and £500 in seperate payments that way it is really clear the £1,000 is salary and the £500 is a loan repayment. Even better though I would suggest...
  15. TimCaprica

    Help a newbie get started with his own bookkeeping?

    Hello, There is no correct answer to this question. What you will find is that different accounting systems all have different account names. In the written accounting standards there are only really two main categories of expense 'Cost of Sales' being the direct costs of what was sold and...
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