Featured Accountancy FAQs

This months featured FAQs

Are gifts to my employees tax deductible?
Are gifts to my customers tax deductible?
Are virtual Christmas parties tax deductible?

FAQs: Annual accounts

When are my accounts due?
What if I miss my filing deadline?
Can I choose my own financial year end?
Can I change my financial year end?
When is my Corporation Tax due?
Do I need to file accounts if my company is not trading?
How long do I need to keep company records for?
Will coronavirus have any impact on my company’s accounts?
What is the difference between the profit and loss and balance sheet?
What are accruals?
What is a director’s loan account?
Do I have to pay tax on a Director’s Loan Account?

FAQs: Audits

What is an audit?
Do I need to have an audit of my financial statements?
Can a company have an audit even if it doesn’t legally require one?
What does an audit involve?
What is materiality?
Are there different types of audit reports?
My company is small company but I’ve been told I need an audit because my company has an overseas parent company, is this true?
Is there any other piece of work which can provide me (or the shareholders) some comfort over the accounts without having an audit?
What is an assurance review?
How much does an audit or assurance review cost?
Will additional audit work required as a result of the coronavirus pandemic?

FAQs: Auto enrolment and work place pensions

What is Automatic Enrolment?
What is Automatic Re-enrolment?
Who is enrolled?
How do I choose a pension scheme?
How does an employee opt out?
Can I postpone enrolling an employee?
Do I have to re-enrol employees who have opted out?
What are my ongoing responsibilities?

FAQs: Budgeting

What is a budget?
What makes a good budget?
What are the benefits of preparing a budget?
Are budgets just for large established companies?
I am a start-up – where should I begin?
Is budgeting really worth the hassle?
What is the difference between a budget and a cashflow forecast?

FAQs: Cashflow forecasts

What is a cashflow forecast?
Why is it important to produce a cashflow forecast?
What makes a good cashflow forecast?
I am a start-up - where you should I start?
Forecasts are just for large established companies, right?
Is there software available to help me prepare a cashflow forecast?
What is the difference between a budget and a cashflow forecast?

FAQs: Construction Industry Scheme

What is the Construction Industry Scheme (CIS)?
What are contractors and subcontractors?
What are the responsibilities of a contractor and subcontractor?
How do I register as a contractor and subcontractor?
What type of construction work falls under the Construction Industry Scheme?
What is the Domestic Reverse Charge?
When does the Domestic Reverse Charge come into effect?
What is an 'End User'?
What is an 'Intermediary Supplier'?

FAQs: Corporation Tax returns

When is my Corporation Tax due?
When is the corporation tax return submission deadline?
What is the current corporation tax rate?
What is a company’s Unique Taxpayer Reference (UTR)?
What is HMRC’s Corporation Tax contact number?
How do I register for Corporation Tax with HMRC?

FAQs: Credit control

How long should I give my customers to pay?
Some of my clients/customers always pay me late, what can I do?
How can I reduce the time spent on billing administration?


What are the EIS & SEIS Investment Schemes?
What is the difference between EIS & SEIS?
Who qualifies for EIS?
Who qualifies for SEIS?
What is a qualifying trade?
What is a qualifying subsidiary?
How much of a tax break will investors receive?
What can I use the funding for under EIS?
What can I use the funding under SEIS for?
Are there any conditions that need to be met under EIS?
Can I apply for EIS at any time?

FAQs: Making Tax Digital (MTD)

What does the Making Tax Digital Service (MTD) mean for my business?
Can I incorporate MTD into my accounting software?
How does MTD benefit my business?
Can I submit spreadsheet VAT Returns through MTD?
Is MTD for VAT mandatory for my business?
What records do I need to keep digitally for MTD for VAT?
What is bridging software?
If my taxable turnover is below the threshold, can I sign up for MTD VAT voluntarily?
When is Making Tax Digital being introduced for income tax?

FAQs: Payroll & PAYE returns

What should I do if a new employee does not have a P45 when they start working?
My employees receive benefits which are not recorded through payroll - what should I do?
What happens if an employee has under or overpaid tax through PAYE?
How do I payroll a benefit?

FAQs: R&D Tax Credits

Who qualifies?
What are Research & Development tax credits?
What is a qualifying R&D activity?
What costs qualify?
Which tax credit scheme is right for me?
What is classed as an SME?
What is classed as a large company?
How much could I claim?
Will the Coronavirus Business Interruption Loan Scheme (CBILS) and/or the Bounce Back Loan Scheme (BBLS) impact an R&D claim?

FAQs: Tax advisory

Are the Covid-19 government grants taxable?
What is a director's loan?
How much can a director borrow?
What is a director’s loan account?
Do I have to pay tax on a Director’s Loan Account?
What are the tax implications of purchasing a rental property?
What if I am not a UK resident and rent out a property?
What are the changes to HMRC’s reporting requirements for capital gains arising on residential properties after 6 April 2020?
Why do I suddenly have to make tax payments on account for my next year's personal tax bill?
What if I cannot afford to pay my personal tax bill in January?
Are gifts to my employees tax deductible?
Are gifts to my customers tax deductible?
Are virtual Christmas parties tax deductible?
Are there tax advantages of purchasing an electric company car?
What is a Benefit-in-Kind?
Is there a Benefit-in-Kind charge for my employee using a company electric vehicle?
Is there a Benefit-in-Kind charge for my employee if the company pays for the cost of charging a company electric vehicle?
My children’s school has invited parents to make a one-off donation to assist with much-needed school funds following the Coronavirus epidemic. Will I need to complete a gift aid declaration, and will I be able to claim tax back on the payment?

FAQs: Tax investigation fee protection insurance

What is the tax investigation fee protection policy?
Why would I be investigated?
How much does an enquiry cost?
What does the tax investigation fee policy include?
What is excluded?
Does my business policy include directors, shareholders, and partners?

FAQs: VAT registration

When must I register for VAT?
What does taxable mean?
How do I register for VAT?
What happens if I register late?
Can I register for VAT voluntarily?
What is included on your VAT Registration certificate?
Can I reclaim VAT on any purchases prior to registration?
When must I deregister for VAT?
What is the VAT deregistration threshold?

FAQs: VAT returns

What is the difference between the cash and invoice VAT schemes?
How often must I submit a VAT Return?
What is the deadline for VAT Return submission and payment?
How are VAT liabilities calculated?
What is a partial exemption?
How long should I keep my VAT Records?
Can I set up a direct debit to pay my VAT liability?
What other methods can I use for paying my VAT bill?

FAQs: Xero support and training

How do I reconcile the bank?
What is a bank rule?
Why do I need to update my bank feed connection?
Can I raise multiple invoices at once?
What is Xero Central?
Can I create my own sales invoice template on Xero?
My bank feed is not available for a direct feed, how do I import the transactions?
Can I email my sales invoices directly from Xero to my customer?

COPYRIGHT © 2021 CALDWELL PENN LIMITED   |   Company Reg Number: 03872209   |   ICAEW - Institute of Chartered Accountants in England and Wales: C005061064