Bookkeeping

We offer expert tax advice and accountancy services in the UK. We can help with tax advice, tax returns, book-keeping, starting a business and even borrowing or raising grants for your business.

Our experts specialize in providing financial services for healthcare professionals, I.T. and technological businesses, Retail Industry, transportation, Real estate, construction Industry and in addition to international and property trades etc.

We also offer extensive variety of services such as Self-Assessments, VAT Returns, Bookkeeping, tax Planning, CIS returns, Payroll, Limited company formations, Business administration and financial planning. Along with those we also serve clients with Auditing and P11D for Directors. Our diverse client base consists of retail, service-based and professional sectors.

We serve businesses with kinds of business structures such as sole traders, SME’s, partnerships and large limited companies. For us “Every Client is of equal worth” which is proven by our high customer satisfaction. We guarantee to deliver a high-quality service from a team of dedicated personnel who are professionally competent.

Our fees are calculated on a fixed fee basis, so you know up front how much it will be, for the services you require. We work closely with our clients to ensure they receive expert guidance through the complex world of accounting.


Current Promotion:

In the event of a change of account, if the company also moves to its headquarters,
we provide the seat service for a given year * free of charge!

(so that the switch does not involve extra costs)


An English company with one tax year has the following obligations:

 

  • Payroll (if you have a salary) Weekly, 2 weekly, or 4 weekly or monthly
  • VAT returns quarterly if you have VAT (VAT) registration for your company
  • Confirmation Statement
  • Annual Account
  • Corporation Tax (CT600)
  • Director Self Assessment Declaration

 

In chronological order, from the accounting point of view, do the following:

 

  • Signing a bookkeeping contract for 1 full tax year
  • Customer Gate Registration (https://symfalogic.com/login)
  • Customer Gate Registration at Symfalogic Cashflow Account (Direct Invoicing, Bank Transactions, Accounting Statements, etc.)
  • Get UTR Number (Director Self Assessment)
  • Goverment Gateway Registration (Hmrc Self Assessement – Personal Client Gate)
  • Goverment Gateway Registration (For Tax Flow Inquiry – Corporate Client Gate)
  • Corporation Tax Registration
  • Paye Registration (Employer Registration)
  • VAT Registration (If required)
  • EORI registration
  • Privacy Registration
  • Preparing Privacy Policy (GDPR)
  • MLR Registration (If required)
  • Payroll (Paye Registration)
  • VAT Declaration Quarterly (for companies with VAT registration)
  • Confirmation Statement (end of tax year)
  • Annual Account (end of tax year)
  • Corporation Tax – CT600 (end of tax year)
  • Director Self Assessment Statement (end of tax year)

 

Tax change dates:

 

  • National Minimum Wage (Minimum Minimum Wage Change for All Ages) Every Year Beginning of October
  • National Living Wage (Defining the National Minimum, 25 Minimum Hourly Wage) Every April
  • Personal Allowance (Change in Employee Income Tax Limit) Every April
  • VAT Registration Limit Changes Every Year April 1 (January 1, 2019 Ł 85,000)
  • Corporation Tax Rate is 19%. Every year April 1

 

Corporate taxation:

Companies pay Corporation Tax on their year-end positive results.

From 01.04.2017, the rate has been uniformly 19% !!!

 

PAYE, Wages and Contributions

In order for a company to be able to retain and pay employees, it must have a so-called Paye Registration Number.

Obtaining a registration number requires a separate registration. At the time of registration, the date of the first payroll must be provided and from then on the company must send a report to HMRC (at least) monthly. If no work or wages have been paid during a given period, a Zero Return must be filed.

 

Taxes and contributions deducted in payroll accounting:

Income tax is deducted from your wages, which is 20% up to £ 50,270 a year, but is tax free up to £ 12,570!

The National Insurance contribution, which is 12%, is also deducted from the employee’s salary.

The employer also pays a National Insurance contribution of 13.8% after the employee. (So a total of 25.8% NI payment is made.)

but it should be noted here that in this case, any company that has an employee can take advantage of the Employment Allowance, which is currently available at a discount of £ 4,000 a year on contributions.

So for an English company with fewer employees than, say, 5 people, calculated on the basis of the minimum wage and taking advantage of the discount, 13.8% of National Insurance can be triggered in this case.

 

Dividend tax bands:

 

tax band The tax rate on dividends is more than £ 2,000
Basic fee (and not for taxpayers) 7,5%
higher 32,5%
further rate 38,1%

 

06 April 2021.

The first day of the 2021/22 tax period. The period is from April 6, 2021 to April 5, 2022.

The most important change is the increase in the minimum hourly rate. For those over 25, the new minimum hourly rate is £ 8.91.

Year 25 over 21-24 18-20 18 under industrial learner
2018. April (valid from) £ 7.83 £ 7.38 £ 5.90 £ 4.20 £ 3.70
2019. April (valid from) £ 8.21 £ 7.70 £ 6.15 £ 4.35 £ 3.90
2020. April (valid from) £ 8.72 £ 8.20 £ 6.45 £ 4.55 £ 415
2021. April (valid from) £ 8.91 £ 8.36 £ 6.56 £ 4.62 £ 4.30

The general tax code has been changed to 1270L.

 

The Personal Allowance rate increases to £ 12570 annually, meaning annual income of £ 12570 is tax-free.

Tax bands:

Taxable income Tax rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
Additional rate over £150,000 45%

Dividend tax rates

Dividend tax rate:

There is no change in the dividend tax rate in 2021/2022:

  • The tax-free dividend subsidy is £ 2,000
  • Basic-rate taxpayers pay 7.5% on dividends
  • Higher rate taxpayers pay 32.5% on dividends
  • Additional rate payers pay 38.1% on the dividend.

NI Contributions

The NI rates for employees did not increase, the rate deducted from the employee remained at 12% for deductions above the NI-free limit.

However, the NI-free income limit rose to £ 797 a month and £ 956 a year.

The rate of pension deductions varies. So far, the employee has remained at 5% and the employer contribution rate has remained at 3%.

Pension contributions are deducted from the income above £ 520.

 

Changes affecting Self Employed:

The limit for the payment of a Class 2 NI contribution has changed to £ 6,515 per annum. Those earning below this income are not required to pay contributions.

The Class 2 contribution rate rose to £ 3.05 a week.

The Class 4 NI contribution payment limit has been raised to £ 9,568. The contribution for the excess is 9%.

Corporation tax remained at 19%.

The VAT rate remained at 20%.

The VAT registration threshold also remained at £ 85,000.

 

Corporate tax return

The tax period is 12 months from the date of the change. The annual return return must be filed with Companies House within the 13th month and the fee must be paid.

You have 9 months from the end of the tax year to prepare, submit and pay income tax.

(parts of the return: balance sheet and profit and loss account and CT600 corporate tax return)

 

Payroll returns

Simultaneously with the payment of wages, an EPS report must be sent every month through the RTI system, and the company has an FPS reporting obligation at the same time as the subsequent payroll accounting for the tax year.

At the end of the tax year, a statement of compensation and benefits for employees must be prepared and submitted to employees by 31 July each year.

 

VAT returns

VAT registered companies are required to file a VAT return on a quarterly basis

by the 7th of the month following the end of the quarter.

 

Self Assessment return

Every person holding a directorship in an English company is required to submit a Self Assessment Statement on paper by 31 October each year,

while on an online basis every year until January 31st!

Click on the link below to submit your return: Self Assessment bevallás benyújtása

 

How to withdraw money from the company?

The main purpose of entrepreneurial activity is profit and gaining wealth. One of the most common questions when planning a business is

how owners and / or managers “take” their profits out of their business.

 

 

There are basically three options:

  • Invoicing. Payment for a product or service against an invoice.

 

  • Payroll costs should be paid within the framework of monthly payroll accounting. The advantage is that in the current tax period there is no contribution and tax implications up to £ 9,568 per annum, only the NI contribution is payable for the part below £ 12,570. Income in excess of £ 12,700 is subject to Tax and NI payment obligations. Another advantage is that since the payment is accounted for as an expense, the corporate tax base is also reduced by the wage cost paid..

 

  • The third solution is to pay dividends from after-tax profits. Dividends levied up to £ 2,000 per annum are tax-free, with the remainder being subject to dividend tax:

 

Basic rate ( up to an annual income of £ 50,270 ) 7,5 %

Higher rate (From £ 50,271 to £ 150,000 in income) 32.5%

Additional rate ( for an income in excess of £ 150,000) 38.1%

 

 

All in all, if you have both employee and owner status in the company, you can earn the following tax-free income per person:

 

  • As an employee:  Ł 9.568 / year
  • As an owner:  Ł 2.000 / year

Total: you can withdraw £ 9,568 + 2,000 = £ 11,568 from the company tax-free.

 

For the tax year 2021/22 (April 6, 2021 – April 5, 2022)

Calculated 37.5 hours per week full time
8.91.- with an important minimum wage:

 

  • Gross annual salary: £ 17,375
  • Annual tax payable: £ 959.20.-
  • Annual NI contribution deducted from employee: £ 936.84
  • Annual NI contribution to be paid to the company after employment: £ 1,177.83.-

 

  • Annual net salary payable to employee: £ 15478.96.-
  • Gross monthly salary: £ 1,447.92.-
  • Monthly tax: £ 79.93
  • Monthly NI contribution deducted from employee: £ 78.07.-
  • NI contribution to be paid to the company per month for the employee: £ 98.15.-
  • Net monthly salary payable to the employee: £ 1,289.91.-

 

Total monthly salary expenses for the company: £ 1,546.07.-

 

 

27 hours a week on a part-time minimum wage:

  • Gross annual salary: £ 12,510
  • Annual tax payable: £ 0.-
  • Annual NI contribution deducted from employee: £ 353.04.
  • Annual NI contribution to be paid to the company after employment: £ 506.46.-

 

  • Annual net salary payable to employee: £ 12.156.96.-
  • Gross monthly salary: £ 1,042.50
  • Monthly tax: £ 0.-
  • NI contribution payable monthly from employee: £ 29.42.-
  • Monthly NI contribution to be paid to the company for the employee: £ 42.21.-
  • Net monthly salary payable to the employee: £ 1,013.08.-

 

Total monthly salary expenses for the company: £ 1,084.71.-

 

 

On a part-time minimum wage of 20 hours per week:

  • Gross annual salary: £ 9,266.40
  • Annual tax payable: £ 0.-
  • Annual NI contribution deducted from employee: £ 0.-
  • Annual NI contribution to be paid to the company after employment: £ 0.-

 

Annual net salary payable to employee: £ 9,266.40.-
Gross monthly salary: £ 772.20.-
Monthly tax: £ 0.-
NI contribution deducted from employee per month: £ 0.-
NI contribution to be paid to the company per employee per month: £ 0.-
Net monthly salary payable to the employee: £ 772.20.-

 

Total monthly salary expenses for the company: £ 772.20.-

 

Paying less than 27 hours a week has no Tax implications, as the amount of annual gross pay does not reach the Tax-free limit of £ 12,570.

Payments of less than 20 hours a week are no longer subject to the National Insurance contribution obligation, because the amount of the annual gross salary does not exceed the contribution limit of £ 9,568. In this case, the gross wage is equal to the net wage payable to the employee.

 

The UK is waiting for you! – go into your Company Formation

and ask our help for any financial issues. We are looking forward to contacting you as soon as possible!

 

 

 

Phone:  +44 (0) 1357 – 340 – 000

Email:  accountancy@symfalogic.com

Skype: Symfalogic Corporation

 

 

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