VAT is value-added tax. It’s applied to the sale of most goods and services, though certain goods and services are either exempt, or charged at a reduced rate. And unlike income tax, it’s collected by the seller. At the time of writing, the standard VAT rate in the UK is 20%. Only the most successful…
You can claim certain business expenses as part of your tax return. Only some expenses are allowable. You can read our complete guide to allowable expenses for self-employed workers. This is why it’s a good idea to keep the receipts for any purchase you make for your business. With receipts to hand, you’ll have a…
If you’re self-employed or a sole trader, do you need a business bank account? After all, you’re your own boss now. You do things on your own time, and on your own terms. So surely you can do business with your own bank account? It’s an issue many who are new to the business world…
When working out your hourly rate for contracting, what you’re really trying to work out is this: How much is your time, your energy, and your talent worth? These are difficult questions for anyone to answer. So instead, when working out your hourly rate, think in more grounded terms. Think about how many hours you…
If you run a business, then you need insurance. You’re legally required to get certain types of business insurance. But even beyond your legal obligations, you should view business insurance as an essential safety net. Insurance guarantees that you’ll be able to bounce back from any crisis, no matter how severe or unexpected. If you…
According to a 2019 report by the Federation of Small Businesses, small businesses fall victim to around 10,000 cyber-attacks every day. Cybercrime is estimated to cost small businesses a staggering £4.5 billion each year, with the average cost of a single attack at £1,300. The latest 2020 Cyber Breach Survey from the government, reported that…
A director’s loan account (DLA) allows directors, or their family members, to take money out of their company. To qualify as a “director’s loan”, this money must not be a salary, a dividend, or an expense repayment. Also, it must not be money you’ve previously paid into or loaned to the company. How Does A…
If you’re thinking about setting up your own business, you’re no doubt aware of the many administrative responsibilities you’ll have to take on. One thing many wonder about is: Do I need a business bank account? Or am I OK to continue using my own personal account? Unfortunately, there’s no short answer to this question….
If you run a business, whether you’re a freelancer, a self-employed contractor, or the managing director of a limited company or partnership, you need to keep detailed records for tax purposes. These records might include all sales and incomes, all your business expenses, and if you’re self-employed, records of your personal income. If you employ…
If you’re a freelancer, a contractor or a sole trader, you might be wondering when it’s the right time to register for VAT. You probably already know that the annual turnover threshold for registering for VAT is £90,000. But do you know the rules beyond this? For example, do you need to register after you’ve…