Elm Tree Farmhouse, Llanymynech, Powys, SY22 6PA
TPP Accountants have over 35 years experience in the accountancy profession and are proud to be Chartered Certified Accountants in Oswestry. We understand the needs of a small business.
WHERE ARE WE?
Based just outside Oswestry in Llanymynech, our office address is: Elm Tree Farmhouse, Llanymynech, Powys, SY22 6PA. Please see the map on our contacts page for more details.
We offer a range of services including Annual and Management Accounts, Company and Personal Tax, Business Services, Bookkeeping, Rental Accounts and Payroll.
“I needed a firm of Oswestry Accountants and have found TPP Accountants to be extremely reliable, efficient and easy to communicate with. I have recommended them to others."
Please note that our fees are not subject to VAT. Our list of fees are just a guideline. For a more detailed personalised quote please fill in the online form or call us on 07944 991775.
Call us on 07944 991775 or email using the links provided. Alternatively, you can fill in the online form, providing details of the services required for a free, no-obligation quote.
Starting up in business or looking for a change in direction?
Sole Trader vs Limited Company...which is right for your business?
Lets look at some comparisons to help you decide.
As a sole trader you are personally liable for any debt of the business.
Sole traders pay tax on their business profits via a self-assessment tax return.
The deadline for filing online self-assessment returns to HMRC is
31 January after the end of the tax year. The personal allowance for the
tax year 2017/18 is £11,500.
The Basic rate of 20% is paid on income up to £45,000, the Higher rate
of 40% is paid on income between £45,501 and £150,000 and the
additional rate of 45% is paid on income over £150,000.
Losses can be offset against other income in the same year, carried back
and offset against previous year's profits or carried forward and
offset against future profits.
National Insurance (NI)
A sole trader pays Class 2 NI contributions and Class 4 NI contributions of 9% on
profits in excess of £8,164 (2017/18).
Accounts and Tax Returns
Sole Traders and Partners are not legally required to file annual accounts.
They must, however, keep records of income and expenses for the
purpose of filling in their tax returns.
A limited company is a seperate legal entity, so as a shareholder your
liability is limited to your shareholding.
A director of a company may take a salary from a limited company and this is
taxed at source under the Pay As You Earn tax system (PAYE).
Unless they have absolutely no pay or benefits then a director MUST
file a tax return. This is regardless of whether tax is owed or not.
A limited company pays corporation tax on its profits which is charged
at 19% from 1 April 2017 and is payable 9 months and 1 day
after the accounting period end. A company tax return must be
filed 12 months after the accounting period end.
The dividend allowance (the value of dividends that shareholder can receive
tax free) currently stands at £5,000. However, from 6 April 2018 the allowance
is being reduced to £2,000. For dividends above the dividend allowance the
following tax rates apply: 7.5% at the Basic rate, 32.5% at the
Higher rate and 38.1% at the Additional rate.
Losses can be carried forward and offset against future profits or carried back
and offset against the previous year's profits.
National Insurance (NI)
Class 1 National Insurance may be payable on directors' salaries and bonuses
depending on the level of income. Employers National Insurance at
13.8% may also be paid on directors' salaries and bonuses.
Accounts and Tax Returns
Please see below for more details of the legal requirements of a limited company.
Thinking of setting up a Limited Company? Here's a brief outline of what is involved.
The following information must be provided to Companies House:
Memorandum of Association - limited company name, location, business type.
Director's names, addresses and registered limited company address.
The limited company must be said to comply with the terms and conditions
of the Companies Act.
Articles of Association - director's powers, shareholders right etc.
A director of a limited company has certain legal responsibilities, including:
Your newly set up limited company must be registered at Companies House.
Annual accounts and confirmation statements must be filed with Companies
House every year.
Abbreviated accounts must be sent to HMRC every year.
A Corporation tax return must be completed each year and filed with HMRC.
We can form your limited company and complete all necessary legal requirements, leaving you to get on with running your business.
What's in the news?
Training for Self-Employed to be tax deductible?
A government proposal to make training for new skills for the self-employed tax deductible is being welcomed by the Association of Independent Professionals and the Self-Employed (IPSE).
IPSE have said that the tax relief should not be limited to formal qualifications, but also include the training many sole traders need which are specific to their individual trade such as general training on how to run a business – such as marketing or accounting.
IPSE does however, question the necessity of an annual cap on tax relief spending on the self-employed, an issue which has been raised in the consultation papers. Imogen Farhan, IPSE Policy and External Affairs Officer, commented:
“We would also recommend the government follow the lead of many OECD nations by not imposing an annual cap. It is difficult to imagine a cap that would be suitable for all sectors and earning levels. Instead, the government could minimise the risk of misuse by introducing clear rules on the types of training people can undertake.”
HAPPY NEW TAX YEAR!
The 2018/19 tax year begins today bringing with it a number of changes to income taxes and personal allowances. Here’s a brief summary of what to expect…
The standard personal allowance will rise from £11,500 to £11.850. This is the amount you can earn without paying income tax and works out as a tax cut of £70 for most people.
The starting point for paying 20% basic rate tax will be £11,850, while 40% tax will start on earnings above £46,350. This is up from £45,000 the previous tax year.
The level at which National Insurance will be charged at 12% of income on earnings rises from £8,164 to £8,424. On earnings above £46,350 the rate drops to 2%.
From today workers must make pension contributions of a minimum of 3% of salary (up from 1%). Employer contributions rise from 1% to 2%.
Buy-to-let landlords will only be able to offset 50% of their mortgage interest when calculating their tax bill. This compares to 75% previously.
The amount of tax-free dividends you can earn drops from £5,000 to £2,000.
National Minimum Wage and directors
The national minimum wage rates rise on 1 April 2018. Most directors of their own companies do not have to pay themselves the national minimum wage. This is the case where the director does not have a contract of employment with the company and is effectively paid only for their role as an office holder. Where the director does have an employment contract with the company, they will be treated as an employee for NMW purposes and the NMW should be paid for all the hours they work.
Paying your children from the business
You can pay your children out of your business, but they must do some real work for that money, work which is worth what you pay them. You can’t pay more than the going rate for an office assistant just because the worker is a relative. The work needs to be performed at your business premises. Skills which could be used to promote your business online or to design marketing materials could be applied remotely, if for example they are away at university. However, you need to be able to prove that adequate work was performed for the rewards.
What Our Clients Say...
"It is a pleasure to recommend the services of TPP Accountants. They have answered all my queries professionally and, to me more importantly, in a language I can understand.”
“We found Terry and his team to be extremely proactive - actively providing ideas and suggestions to improve our accounts preparation and most importantly our cash flow management.”
“I can say without reserve that TPP Accountants have provided the most valuable, accurate and timely information of any accountants I have worked with. I recommend Terry and his team unreservedly.”
“I needed a firm of accountants in Oswestry and have found TPP Accountants to be extremely reliable, efficient and most importantly, easy to communicate with. I have recommended them to others."
"TPP Accountants have provided us with a fantastic solution to our small business needs. Terry and the team have been a real boost to our business."
"I first used the services of TPP Accountants when I became self employed. They were a great help and their knowledge allowed me to overcome the fears I had regarding the financial side of business."