Frequently Asked Questions
HOW IT WORKS
How easy is it to switch to Add-Worth?
Very easy. We just need the contact details of your current accountant , and your approval to speak to them. Setting you up on Dext and Xero (and closing your accounts on other services) is done within 48 hours
What will Add-Worth need from me to get started?
Once you’re set up on Xero and Dext, you’ll be able to easily share your financial data with us. All you’ll need to do is take a few pictures of your purchase invoices and give us access to your sales data.
What type of support do I get?
You’ll get 1-1 support via phone, email and video call support from Marelize or Charles. We are there for you to ask any questions about your accounts, reports and other admin. Send an email to firstname.lastname@example.org and we’ll respond within one business day or less.
Can Add-Worth help me set up a company?
Absolutely. We don't publish prices for this service on our website as it depends on a number of factors. Simply get in touch and we'll put a plan together.
What is a sole trader/self-employed?
You’re self-employed if you run your own business, hire people, provide the equipment you need to work, charge for your services and sell goods or services for profit. A sole trader or self-employed person is not a limited company. If you’re unsure or need further information, please consult the HMRC website.
What records do you need to keep?
What can you claim as expenses?
What is a Limited Company?
Who needs to pay VAT?
At present, businesses with a taxable turnover of over £85,000 in a 12 month rolling period must register for VAT. This includes both Limited Companies and Sole Traders. However, if your turnover is under £150,000, there are VAT scheme options available to you.
Why do I need an accountant to do my VAT?
VAT can be very confusing. Some goods and services are VAT exempt, whilst others aren’t. Failure to comply with your VAT obligations can result in fines and other issues. Our experienced team can ensure that you’re getting the most out of VAT, without paying over the odds. We can also advise on your individual circumstances and whether there might be beneficial schemes available to you.
What is bookkeeping?
Why do I need to keep my bookkeeping up to date?
What is the difference between Cash and Accrual Accounting?
Why choose us for your business bookkeeping services?
Why do landlords need an accountant?
What can we help you with?
What partnership accounting and tax work can we help you with?
How do I find a good tax accountant?
Do you need an accountant to do your tax return?
How do I set up a personal tax account?
Setting up your personal tax account can be done on HMRC’s website. Before you begin, you’ll need to have your National Insurance number, passport or a recent P60 handy. Then head on over here: https://www.gov.uk/personal-tax-account
When is personal tax due?
Your personal tax deadline is midnight on 31st January the year after your tax year ends. For example, for the tax year ending 5th April 2021, it will need to be submitted before 31st January 2022.
How long do I have to keep personal tax records for?
Coming straight from the horse’s mouth, HMRC says that “you must keep your records for at least 5 years after the 31st January submission deadline of the relevant tax year. HM Revenue and Customs may check your records to make sure you’re paying the right amount of tax.”
What is a personal tax summary?
What is a personal tax allowance?
Talk to Add-Worth Accountancy about your personal tax
The main thing to remember about personal tax is this – it’s personal. Just because your mate Dave says one thing about tax, doesn’t mean that it applies to you. To make sure your personal tax is as easy and streamlined as possible contact us.
What are Statutory Accounts?
Statutory accounts (also called annual accounts) are financial records prepared at the end of the financial year.
These annual accounts get sent to shareholders, Companies House, HMRC, and people who attend the company’s general meetings.
Every limited company in the UK has to keep their records up to date, even if the company is dormant.
What’s the difference between statutory accounts and management accounts?
Statutory accounts are mandatory, management accounts are not. If you find yourself at a loose end, then sure, why not produce some management accounts, but it’s the statutory accounts that must be submitted annually and within a set timeframe. Management accounts are ideal for making internal business decisions using the financial data available at any given time.
What are non-statutory accounts?
Any other financial statement issued by your company is a non-statutory account. These are valuable in terms of the financial nitty-gritty details concerning your business, and helpful to use from a financial viewpoint when exploring where your company is headed.
What’s included in statutory accounts?
- A balance sheet
- A profit and loss statement
- Notes about the accounts
- A director’s report
- An accountants or auditor’s report
Where do I send statutory accounts?
All annual accounts must be sent to shareholders, Companies House, HMRC and anyone who attends the company’s general meetings.
Who signs statutory accounts?
The company director.
When are annual accounts due?
You will need to file your annual accounts with Companies House within 9 months of your company’s financial year end, with the exception of the first year from date of registration. The due date for the first year's accounts is a bit more complicated - speak to us for the details.
Can I prepare my own statutory accounts?
Of course but it’s not easy! If you don’t want to (and we don’t blame you) then hiring an accountant will make sure you meet all the legal requirements and avoid any legal penalties. The accounts you file will become publicly available, so it’s imperative the accounts are accurate as company directors will be held responsible for any incorrect data.
As with most bookkeeping and financial activities, it can seem daunting at first. Statutory accounts are just one of the services we offer so that you can carry on running your business and leave the numbers up to us. When your accountant manages your annual accounts, not only is it a streamlined process, but it’s an additional safety check that can put your mind at ease.
Payroll Services with Add-Worth Accountancy
A sloth yawning. Cooking a turkey. Your granddad telling his favourite story about when he was in the Navy. These things are time-consuming, but none of them compare to payroll.
Payroll services are time-consuming. It is also one of the most business-critical functions that must run effeciently so that you, your employees, HMRC are all happy. But what happens if your payroll manager goes off sick? Can you respond quickly to a change in government legislation? If not, that’s where we come in, but there are many other points to consider when it comes to payroll services.
What do payroll services include?
A small business payroll service will differ from a large multi-national company payroll service, but payroll packages will usually include:
- Data entry
- Tax calculations
- National Insurance
- RTI provided to HMRC
- Official documents, e.g. P45, P60 and P11d
- End of year summary
- GDPR compliancy
Why do companies use payroll services?
Do you think Superman did his own payroll? “Sorry Lois, I can’t save the burning school because I’m just sorting out my National Insurance contributions”. No. Superman will have outsourced his payroll services (we’re not saying it’s us, but we’re not saying it’s not).
Companies use payroll services because they can focus on all their brilliant superpowers, such as business development, sales, and communications, instead of playing around with numbers. In-house payroll services are money burners, so companies often use payroll services as a way of saving the business money. What’s more, a packaged payroll service means you don’t have to worry about compliance, regulations and legislation as accountancy firms have already got in-depth specialist knowledge.
Should I outsource my payroll to Add-Worth Accountancy?
There are many benefits to outsourcing payroll services. Training staff can be incredibly expensive, as can buying the latest software. It also takes time to train employees. Outsource payroll to an accountant, and you don’t need to worry about any of this.
What’s more, outsourced payroll services are quick, speedy and efficient; a company that specialises in payroll day in and day out is likely to be better at complex payroll queries. Nowadays 61% of businesses outsource their payroll, which suggests that thousands of companies prefer outsourcing payroll rather than doing it in-house.
How much does it cost for payroll services?
On average it works out at around £5 per employee per payslip transaction (i.e. per month or per week for weekly paid employees), but it varies between employees and directors. Whilst it’s always important to think about how much it will cost outsourcing your payroll services, it’s also worth thinking about how much it will save you. The value of expert knowledge, the latest software, regular training, risk reduction and pre-empting penalties will give you peace of mind that your payroll is in safe hands.
What is Corporation Tax?
Corporation Tax is paid to HMRC out of any profits your business has made, as well as any profits made from company investments. It differs from personal income tax as there are no personal allowances for Corporation Tax.
Who pays Corporation Tax?
Any active UK limited companies that have made a profit will need to pay Corporation Tax. Public Liability Companies (PLCs), unincorporated associations, and some clubs and membership organisations will also need to pay Corporate Tax. If you’re not sure which category you fit into, then please check – better to be safe than sorry.
Why is Corporation Tax planning important?
The aim is simple: Corporation Tax planning helps you reduce your tax liability and improve your profitability. On a deeper level, Corporation Tax planning ensures you’re compliant, in control of your company’s finances, and are able to maximise tax relief or tax credits where available.
If you’re not keeping record of how much Corporation Tax you’re paying, how can you find out if there are more tax-efficient ways to increase your profit? Wealth isn’t as simple as ‘make more sales = make more money’, which is why careful Corporation Tax planning should be woven into your financial objectives.
How much is Corporation Tax?
For the financial year 6th April 2021 to 5th April 2022, the Corporation Tax rate is 19%.
What do Corporation Tax Planning services include?
We help you pay the right amount of Corporation Tax, and not a penny more. We’ll also help you pay Corporation Tax on time and inform you of any ways in which you can take advantage of industry specific tax reliefs available.
Most importantly, your Corporation Tax planning will ensure that everything is ticketyboo in the tax arena. You must pay your Corporation Tax as it’s a legal requirement, but we’ll make sure this is as smooth as possible.
How is Corporation Tax calculated?
Take your profit, divide by 100, then multiply by 19. The remaining number is how much Corporation Tax you’ll need to pay. Not quite but it will give you an idea. Us accountants usually have to make a few adjustments to arrive at the correct figure.
It’s worth speaking to your accountant to make sure everything has been calculated correctly before submitting anything to HMRC.
SMALL BUSINESS ACCOUNTING
What is a small business?
According to the UK's Companies Act 2006, a small company is defined as one that does not have a turnover of more than £6.5million, a balance sheet total of more than £3.26 million and does not have more than 50 employees.
Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following: a turnover of £632,000 or less. £316,000 or less on its balance sheet. 10 employees or less.
If you’re unsure whether this is you, our team can advise you on your company status and whether you might be able to take advantage of certain small business and government incentives.
What small business accounting can we help you with?
- Cloud software
- Annual Accounts
- Management accounts
- Tax Returns
- PAYE & Payroll
Why is your pricing based on monthly sales instead of monthly expenses?
Our pricing is fair and transparent without any hidden fees. We found prices based on monthly sales provide the best value for our clients. A small business that’s just starting out may incur a lot of expenses, but not many sales yet.
How do prices change as my business grows?
Add-Worth has a simple and scalable accounting solution that grows with your business. Our pricing is adjusted to your monthly income, and we’ll let you know when this fee changes. As your business expands, you might require more services and expertise. We’re here for all your needs, from supplier and inventory management, to CFO support.
Is there a minimum term or contract with Add-Worth?
You can leave whenever you like with no exit fee. All you need to do is give us one month’s notice. We’ll then support you through the switch to your new accountant.
Are there any one-time fees when I sign up?
No, there is no set-up fee when you join Add-Worth.
What is the FOUNDATION package?
Our FOUNDATION plan ensures your books are up-to-date and ready for HMRC whenever needed. In addition, we’ll dive into your financials and provide useful insights that move your business forward.
How does pricing work?
Our FOUNDATION plan, which includes complete bookkeeping and accounts, is based on a monthly subscription model. The price is transparent and scales with your monthly sales without any hidden fees.
Does the FOUNDATION plan include VAT Returns?
When we say ‘complete accounts’, we mean it. While some other accountants may charge extra to submit your VAT Returns, our FOUNDATION plan includes this service. We’ll make sure everything is submitted according to HMRC guidelines and deadlines. All you need to do is review and approve.
Will you send invoices to my clients and help pay my bills?
Are accounts receivable services included in the FOUNDATION plan?
While our FOUNDATION plan is pretty comprehensive, it doesn’t include following up payments of unpaid invoices. This is an additional service we’re happy to provide. Please speak to us to see how we can help.
What reports will I receive?
You’ll receive financial reports on a monthly basis. This includes; Balance Sheet, Statement of Cash Flow and Profit & Loss Statement.
What if my annual reporting is coming up?
We’ll do everything we can to help you hit the deadline. If you are very far behind with your bookkeeping, there may be an additional cost. But we’ll give you an exact cost breakdown before you join.
What if I require more services?
Add-Worth offers add-on services including: Payroll and Self Assessment. These plans are charged on top of your monthly fee and can only be added to FOUNDATION. Speak to us to see how we can help.
What is Dext?
Dext is an automatic data entry tool that sorts and stores your financial information. It makes uploading receipts, invoices and expenses super quick and easy. You simply take a photo of the receipt or other financial data, upload them into the app, and it will automatically send that information to our integrated accounting platform. No more shoebox full of receipts.
How often should I upload to Dext?
To make sure your books are accurate and up-to-date, we recommend at least once a week. Expenses are an important part of your books and any missing information can have negative effects on your cash position. Set aside some time each week to get into the habit of uploading – we promise it’ll be quicker and easier than you think.
What is Xero?
Xero is a cloud-based accounting software platform that allows us to easily reconcile your books, keep track of profit and loss, pay invoices and more. We use it to get a clear view of your business’s financial position, as Xero easily integrates with other business software tools, like Dext, Shopify, and PayPal. You’ll have access to Xero once you’ve been onboarded, and your dedicated bookkeeper will show you how to review your reports.
Why use Xero?
How do I use my Dext email?
How do I add invoices to Dext?
What happens if I'm not able to send my invoices/receipts documents via Dext?
What is Dext Fetch?
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