by Pi Accountancy | Nov 20, 2024 | QuickBooks
QuickBooks Self-Employed App Removal Starting January 2025, the QuickBooks Self-Employed app will no longer be available for download from the App Store and Google Play. However, if you have already downloaded the app, you can continue using it as usual. It will...
by Pi Accountancy | Nov 14, 2024 | HMRC
Going Paperless with the HMRC App If you find yourself puzzled by the absence of your usual Self Assessment letter, you’re not alone. HMRC is reducing the number of paper communication it sends, encouraging taxpayers to manage their affairs digitally. If you’re...
by Pi Accountancy | Nov 13, 2024 | Self Assessment
Self Assessment for Contractors If you work as a self-employed contractor, you will likely need to submit a Self Assessment tax return each year. This ensures that HMRC has a full view of your income so they can calculate your tax. Do Contractors Need to Submit a Self...
by Pi Accountancy | Nov 12, 2024 | Self Assessment
Self Assessment for Directors Contrary to popular belief, directors do not automatically need to register for Self Assessment. The need to register largely depends on the nature of your income. If you are a director with untaxed income, such as dividends from shares...
by Pi Accountancy | Nov 8, 2024 | VAT
VAT Penalty System Under the new rules, if you submit your VAT return late, you may incur penalties. This change applies to all VAT accounting periods starting on or after 1 January 2023. Whether your return shows a payable VAT amount, a nil return, or a repayment,...
by Pi Accountancy | Nov 7, 2024 | Frequently Asked Questions
What is the VAT Threshold? The VAT Threshold is the point at which your business must register for Value Added Tax (VAT) with HMRC. HMRC currently sets this threshold at £85,000 in annual turnover. If your business’ taxable turnover exceeds £85,000 in any...
by Pi Accountancy | Nov 5, 2024 | Frequently Asked Questions
What is Value Added Tax (VAT)? Value Added Tax (VAT) is a consumption tax that applies to most goods and services sold by VAT-registered businesses. It impacts various transactions, including selling goods and services, hiring or loaning goods, and even...
by Pi Accountancy | Oct 31, 2024 | Business
Business Asset Disposal Relief Business Asset Disposal Relief is a tax scheme which helps business owners keep more of their profits when selling assets. Instead of paying the full 20% Capital Gain Tax (CGT) rate, BADR cuts it to 10% on gains from the sale of assets...
by Pi Accountancy | Oct 30, 2024 | The Budget
The Autumn Budget 2024 The 2024 Autumn Budget brings changes across wages, business taxes and public spending. Here’s an easy breakdown by category to help you understand what’s new and how it may impact you. Employers National Insurance Contributions The government...
by Pi Accountancy | Oct 29, 2024 | Frequently Asked Questions
What is Deferred Income? A business generates deferred income, sometimes called “unearned income”, when it receives payment in advance for something it has not yet delivered. Officials consider the income “deferred” because the business has not...
by Pi Accountancy | Oct 24, 2024 | The Budget
Abolition of the FHL Tax Regime During the Spring Budget 2024, the Chancellor announced the abolition of the Furnished Holiday Lettings (FHL) tax regime starting from April 2025. This change will affect many property owners who have benefited from the favourable tax...
by Pi Accountancy | Oct 23, 2024 | Frequently Asked Questions
What is a Trial Balance? A Trial Balance summarises all the debit and credit balances in a company’s accounting system. Typically prepared at the end of an accounting period, such as a month or a year, it is a key step in the accounting cycle. This process helps to...
by Pi Accountancy | Oct 22, 2024 | Frequently Asked Questions
What is Bank Reconciliation? Bank Reconciliation is the process of comparing the transactions recorded in your business’ financial records with the transactions listed on your bank statement. The aim is to ensure that the balances match, and if they don’t,...
by Pi Accountancy | Oct 17, 2024 | Frequently Asked Questions
What is a Company Year End? Your Company Year End depends on your business and typically aligns with the date you registered your company with Companies House. It’s different from the tax year, which runs from 6th April to 5th April. Your Company Year End typically...
by Pi Accountancy | Oct 16, 2024 | Frequently Asked Questions
What is a Financial Year End? A financial year end, also known as a business year end or fiscal year end, marks the end of a 12-month period that businesses use to report their financial performance. This period marks the time when businesses close their accounts and...
by Pi Accountancy | Oct 15, 2024 | Frequently Asked Questions
What is a Tax Year End? The UK Tax Year runs from 6th April until the 5th April of the following year. HMRC uses this timeframe to calculate your liabilities for the year, whether it’s Income Tax, Corporation Tax or Capital Gains Tax. For example: The tax year...
by Pi Accountancy | Oct 10, 2024 | Frequently Asked Questions
What is Solvency? Solvency refers to a business’ ability to meet its long-term financial obligations. Simply, it measures whether a business has enough assets to cover its debts. A solvent business is one that can pay off its liabilities over the long term,...
by Pi Accountancy | Oct 9, 2024 | Frequently Asked Questions
What is Liquidity? Liquidity measures how easily an asset converts into cash without losing value. Consider cash the most liquid asset because you can use it immediately for purchases or paying bills. On the other hand, assets like property or collectibles may take...
by Pi Accountancy | Oct 8, 2024 | Frequently Asked Questions
What are Fixed Assets? Businesses purchase fixed assets as long-term assets for continuous use. Businesses do not intend to resell or convert them into cash quickly. Instead, they support the business over several years. Examples of fixed assets include: Buildings:...
by Pi Accountancy | Oct 3, 2024 | Frequently Asked Questions
What is a Liability? A liability is a debt or obligation a company must settle. This can be in the form of money, goods, or services. You should record liabilities on the right side of the balance sheet; which includes loans, accounts payable, mortgages, deferred...
by Pi Accountancy | Oct 1, 2024 | HMRC
The Employment (Allocation of Tips) Act From 1st October 2024, millions of workers across the UK will see a boost to their earnings, thanks to the Employment (Allocation of Tips) Act. This new law has been put in place to allow workers to keep 100% of their tips,...
by Pi Accountancy | Oct 1, 2024 | Frequently Asked Questions
What are Current Assets? Current Assets (CA) are short-term resources that a business owns and expects to convert to cash or use up within one year. Current assets appear first on a company’s balance sheet under the Assets section and support the daily...
by Pi Accountancy | Sep 26, 2024 | Frequently Asked Questions
What is Cash Accounting? Cash accounting, also called cash-basis, is a method of recording income and expenses based on when money actually enters or leaves your business account. This means you record a payment only when you receive it, and an expense only when you...
by Pi Accountancy | Sep 25, 2024 | Frequently Asked Questions
What is Accrual Accounting? Accrual accounting is a method of recording financial transactions when they happen, rather than when money changes hands. This approach helps businesses gain a more accurate picture of their financial health by tracking income and expenses...
