Having run my business as a single director / contractor for over fifteen years I thought I would share some insight into the tools and processes I use to make sure the accounting is not a burden.
Simply put as an IT contractor register yourself instantly for the Flat rate scheme. Basically you invoice VAT at the normal rate, currently 20%. However each quarter you only have to pay back approximately 14% of the vat reclaimed to HMRC. So if your business is not constantly buying goods, but providing a service then the savings can be significant.
If like me you want a new bit of technology then wait until you goods in mind that total over 2000 pounds. You can then claim the VAT back on this at 20%. So that new Mac may only cost you £1600 !
Crunch provides an excellent phone application to make everyday recording of expenses a breeze; they call it Snap. Simply take a photograph of the receipt and click upload and within hours it is usually on the Crunch system.
Whilst using Crunch there are a few elements that I require shortcuts for, the first of these being creating an expense
Sun 31st Jan 2016 Self Assessment filing and payment deadline Annual filing and payment deadline for personal Self Assessment tax returns
Tue 5th Apr 2016 Final Payment Submission to HMRC Deadline for submitting the Final Payment Submission to HMRC
Tue 5th Apr 2016 End of the tax year This is an annual event and is not related to your company's year end unless amended
Thur 7th Apr 2016 VAT filing/payment deadline This is the deadline for submitting a VAT return and making payment to HMRC
Tue 31st May 2016 Accounts due Your year end accounts must be filed with Companies House by this date