SJC Accounting Ltd.
SJC Accounting Ltd.

Frequently Asked Questions

 & Resources

FAQ

What clients do you represent?

We represent individuals with buy-to-let homes, a second income, or dividends that are required to complete self assessments. We also have small business who are sole traders or have taken the route of setting up limited companies. 

Should I set up a ltd company, or remain a sole trader?

This can be a difficult choice, but is based on many factors, such as the type of business, its turnover, future plans, commercial risk level etc. 

Advantages of a Sole trader:

  • No company formation costs
  • Tax return filing only once a year
  • Less administrative work

Advantages of a limited company:

  • You are separate from the company, so no personal possessions at risk
  • Better tax planning opportunities
  • Easier to grow

How quickly can a limited company be set up?

Providing the company name is unique then a company can be incorporated in less than 24 hours

When should I register for VAT?

You must register for VAT if your taxable turnover exceeds £85,000 (17/18 threshold) in a rolling period. You can however voluntarily register at any point.

Do I need a business bank account if I am a sole trader?

No, providing you keep accurate records for all of your business income and expenses then you can use your personal bank account. It can be easier to set up a new bank however

What is MTD (Making Tax Digital), and how does it affect me?

HMRC require all businesses (Inc. sole traders, landlords, ltd companies, and partnerships) to keep records of their income and expenditure digitally, and send summary updates quarterly to HMRC fthrough software. 

 

On 13 July 2017 the Government announced that it would be delaying the introduction of this scheme in response to concerns raised by MPs, businesses and professional bodies. MTD will now not be mandatory until April 2019, and then only for VAT purposes.

Please refer to the update from HMRC for more information.

 

 

 

 

 

 

 

 

RESOURCES