FINANCE
CRAFTBUTCHER l FEBRUARY 2017 19
ACCOUNTING AND TAXATION - 5 THINGS YOU MIGHT NOT WANT TO THINK ABOUT... BUT YOU MUST!
ACCOUNTING and Taxation are oſten the last thing you want to think about when running your business. But the 5 points set out below are things you can’t just ignore.
1. If you pay anyone more than £112 a week (£486 a month) you need to operate PAYE. If you have employees earning more than £192 a week you must also “auto enrol” them into a pension scheme. Even if all your employees earn under £192 some of them may have the right to opt in to a pension scheme. You have to have a payroll system capable of reporting to HMRC in real time. HMRC has a basic, free, payroll package but it is not terribly good at dealing with auto-enrolment.
2. If your rolling annual sales exceed £83,000 you will probably need to register for VAT (there are some exceptions depending on the sort of supplies you make). If all you sell is food other than “take away” food you can request that you do not register but generally speaking you will be better off being registered as you will get back all the VAT you pay on your running costs and equipment.
3. Whatever the size of your business you need some financial records. Tere are legal requirements under tax and company law but more importantly you need some means of keeping track of what you are making, what your costs are doing, what you are owed and how much you owe. You should also consider your own needs and preferences. Do you need to account for more than one shop? Do you need to access your accounting information from multiple locations or on the go?
4. If you operate your business through a limited company you need to consider the various non-financial record keeping and filing requirements including registers of members, directors and the recently introduced register of people with significant control (PSC).
5. You should review the “vehicle” (sole trade, partnership, limited company etc.) you use to operate your business. As circumstances change it may make sense to change. A sole trader growing and investing heavily in equipment may be better off running through a company paying only 20% tax on reinvested income
compared with up to 45% (plus some NIC) for a sole trader. Operating through a company may no longer make sense with the new, higher, rates of dividend taxation. A company can make succession and family involvement easier. Tere is no “one size fits all” solution. Sound complicated? We
would be happy to explain any of the above in more detail and discuss how and if it affects you, aſter all every business is different. At AIMS we focus on the numbers so that you can focus on doing what you do best – running your business. Why not call your local AIMS Accountant today and see if we can help you. See
www.aims.co.uk/ findyourlocalaccountant,
or call our head office on 020 7616 6629 for more information.
AIMS working with the NFMFT to bring members affordable accounting advice. View the special offer to
members at
www.nfmſ
t.co.uk/ services/services
DIARY DATES 2017
LOCAL ASSOCIATION / COUNCIL MEETINGS & EVENTS MARCH 13
Spalding & E Elloe BA Meeting
(Mrs M Barnes: 01775 713482 /
barnesjonathan@sky.com) 19:30 Te White Horse Inn, Spalding For further info contact secretary
MARCH 13 LRMTA Meeting (R Kelsey Tel: 01892 541412 / roger@nfmſ
t.co.uk)
19:00 Te Holiday Inn, Sipson Road,West Drayton UB7 0JE For further info contact secretary
MARCH 15 NFMFT Spring Roadshow
Exhibitors, demonstrations and presentations plus BBQ Competition
The Windmill Village Hotel, Coventry
For further information go to
www.nfmſ
t.co.uk e-mail info@nfmſ
t.co.uk or call 01892 541412
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