Any company that makes a profit is entitled to pay a dividend to its shareholders. At Approved Accounting, we’re often asked about how dividends work for limited companies and what the benefits of issuing dividends are for small business owners. A limited company may choose to pay dividends from its profits after tax as often as it wishes. Small business dividends can prove the most tax efficient way for limited company directors to pay themselves, as they are subject to a dividend allowance and are taxed at a lower rate than salaried income. If you need advice on how your limited company shou ..read more

Business expenses are part and parcel of running any small business. Even if you run your business from home with minimal equipment, you may still be able to claim back tax on costs incurred, such as electricity and consumables. So it’s in the interest of all small business owners to track expenses efficiently. It is vital for small businesses to keep a record of their business expenses in order to claim tax deductions. The most efficient way to track your business expenses is with accounting software, which will soon become compulsory under Making Tax Digital. When it comes to claiming tax de ..read more

For most business owners, the services of a professional chartered accountant is considered an essential. If you are just setting out on a self employed basis, you may be wondering at what point you should hire an accountant, or perhaps if you even need an accountant at all. As a small business owner, you are not obliged to hire an accountant as long as you fulfil your statutory requirements with HMRC and Companies House. However, an accountant can add value to your business from day one, providing time saving services and professional advice to support your long term goals. Whether you are a ..read more

R&D Tax Credit relief was established in 2000 to reward small businesses for innovation, improvement and investment. The scheme applies to all SMEs undertaking R&D (research and development) within the government’s definition. The SME R&D tax credit scheme reduces corporation tax liability by 130%, in addition to the usual 100% reduction on taxable expenses. It is non-taxable income, so appears below-the-line on a company’s profit-and-loss account, as either a tax reduction or credit. Approved Accounting help many small businesses to identify R&D activities, account for them co ..read more

Switching accountants may seem a daunting prospect, but with good communication and a little planning, it needn’t be. If you’ve decided to appoint a new accountant and the handover is not going as smoothly as you’d like, read on for some hints and tips from Approved Accounting on how to nudge things along. What are the legal responsibilities of an accountant? Registered and qualified accountants have a responsibility to act ethically. This means they should respond promptly, act in your best interests and perform their duties within the bounds of UK law. Once notified of your intent to leave ..read more

Dentists dedicate themselves to years of hard work to qualify in their profession and establish a practice. That is why, as a dentist, you deserve the services of a specialist accountant to help manage your financial affairs. Specialist dental accountants understand the industry and the intricacies of its tax legislation. They offer sector specific services, such as tax planning for the NHS pension scheme, and help their dental clients to achieve maximum tax efficiency. Dentistry finance is a very specialised area and managing a dental practice today is more complex than ever, due to constant ..read more

How Businesses Can Survive Coronavirus – Approved Accounting We understand that a huge number of businesses will have very real problems and concerns in terms of getting through this period of economic uncertainty which in some sectors has caused demand (and therefore income) to fall off a cliff overnight. The situation and the Government response is moving almost hour-by-hour, so we’ve put together this guide and will continue to update it. We have tried to explain each issue as simply as we can in order to cut through the complexity and give you, as a business owner, something you can unders ..read more

Approved Accounting Specialists in Accounting for Software Businesses We understand the challenges required setting up and running a successful software business: the difficulties around client acquisition cost, churn, software bugs and investment – we’ve seen at all before. In the software sector you need an accountant that understands your business and can provide the specific support you need. We are that accountant. We have the credentials: Top 50 Business Adviser in the UK Xero Gold Partner Vouchedfor UK Top Rated 300 happy clients  99% client retention All directors are ICAEW Chart ..read more

New loan charge and disguised remuneration guidance – issued December 2019 In December 2019, the Government announced it will make changes to the way it will deal with ‘disguised remuneration’ via the ‘loan charge’ rules which have been for some time in the pipeline (and were initially introduced in April 2019). The loan charge rules were aimed at individuals who used certain tax avoidance schemes typically involved offshore companies collecting fees for delivery of the individual’s services, and loaning the funds back to the individual. These schemes were sold to people as a way to earn money ..read more

We are delighted to announce the launch of our new insolvency practice, Approved Recovery Limited. Based in Havant, Hampshire, Approved Recovery specialises in providing cost effective Members’ Voluntary Liquidations to small companies. Licensed Insolvency Practitioner Our licensed Insolvency Practitioner and director, Marcus Tout, has 17 years’ experience in the insolvency sector, working for local, national and international firms. Throughout his career Marcus has specialised in providing Members’ Voluntary Liquidations. Bringing together this specialism with Jon and Matt’s wealth of knowled ..read more