Frequently Asked Questions

The thought of moving accountants or even starting with a new one can often be a daunting prospect, but trust us when we say it isn’t as difficult as you think. 

We have helped transfer lots of local businesses from other accountancy practices to GLX and we always ensure this is as hassle free as possible. 

If you’ve decided it’s time for a change, simply book a free consultation with GLX, tell your current accountant that you’re leaving, and we’ll take care of the rest.

The first step is to book a free consultation with us. 

You’ll speak to a dedicated member of our team who will get to know you, your business and work out a scope and pricing that suits your business and circumstances.

Together we’ll tailor a package and once agreed you’ll receive an engagement proposal that will outline in full detail the services we’ll provide.

We provide services to limited companies, company directors, personal taxpayers, self-employed individuals, partnerships and property landlords. Our services are tailored to you and your needs. 

In order to provide you with a quotation, we can arrange a free, no obligation, consultation with you to discuss your individual needs so that you only pay for the level of support that you require. 

This allows us to best understand your needs and provide a tailored quotation for you.  From this meeting we will provide you with a fixed fee quote that we both agree to and you will then know exactly what you are paying for the services we provide.  

Please do send us across your CV and we’ll be in contact with any vacancies we have available. Please email across to info@glx.co.uk.

Professional accounts preparation services ensure accuracy and compliance with accounting standards. They provide reliable financial statements, supporting informed decision-making and meeting the requirements of regulatory bodies and potential investors.

Outsourcing accounts preparation and company tax services save your company time and resources. It allows you to focus on core business activities while ensuring that financial reporting and tax obligations are handled by professionals, reducing the risk of errors and non-compliance.

Accounts preparation services often include financial analysis and forecasting. They use historical financial data to help you understand your company’s financial trends and make informed decisions about its future.

For limited companies, the following deadlines are applicable:

• Company accounts must be filed within 9 months of your company’s financial year-end
• Your company must make payment of corporation tax within 9 months and a day of your company’s financial year-end.
• Your company must file its company corporation tax return within 12 months of your company’s financial year-end.

As an example, if your company has a year-end of the 31st March 2024, the applicable dates would be as follows:

• Company accounts would be due to Companies House by 31st December 2024
• Your company must pay its corporation tax due by 1st January 2025
• Your company must file its corporation tax return by 31st March 2025. 

At GLX, we would ideally aim to prepare your statutory accounts within 3 months of your yearend. In the example above this would be 30th June. This gives you sufficient time to plan and prepare for your corporation tax bill rather than this being filed in December and this being short notice and a surprise bill.

Limited companies have to prepare formal accounts which are submitted to Companies House and then the company also needs to prepare a tax return which is sent to HMRC.

There are different types of accounts that are filed to Companies House – each type is purely dependent on the size of your company.

The accounts for small businesses are called Micro105 accounts which essentially provide a snapshot of your business only (a balance sheet).

If your business is a little bigger and meets at least two of the below conditions, the company must file some slightly bigger accounts called FRS102a accounts which have a few more disclosures. The conditions are as follows:

• Sales of £632,000 or more.
• £316,000 or more on the company’s balance sheet.
• 10 or more employees.

Once your company gets to above £10.2m in sales, a balance sheet has £5.1m or more than 50 employees, there are further rules which we would need to explore with you.

Your corporation tax needs to be paid to HMRC.

There are a variety of ways in which you can pay HMRC, all of which can be found in detail here: · https://www.gov.uk/pay-corporation-tax

For most businesses, we simply recommend a simple bank transfer, or which the bank details are as follows:

Bank Account: HMRC Cumbernauld

Account Number: 12001039

Sort Code: 083210

In terms of a payment reference, this needs to be accurate to ensure HMRC knows where to allocate the payment to your account. This will comprise of a 17-character reference, of which the first 10 are your company’s UTR and the final 7 are a very specific set of characters. Please contact your client manager at GLX and we will ensure you pay HMRC correctly.

As part of preparing your company accounts and tax return, we will take care of the compliance side of things in ensuring these are delivered to the appropriate places, in the right format and tick all of these boxes. We will also review your accounts to identify core areas to minimise the tax you and your company pay.

This would involve strategic planning to identify eligible deductions utilising available reliefs and allowances along with also reviewing overall tax-efficient strategies to optimise your financial position.

We have common areas which are key to specific industries and based on our experience we can help implement them. 

However, this always needs tailoring to your specific circumstances. This might involve looking at efficient ways to extract money from your business bank account so this is in your pocket, or alternatively this might look at the best ways of purchasing a new vehicle for example.

Typically speaking, we tend to have this conversation when a sole trader starts to earn around £30k per year of profit. In and around this level of profit, purely from a financial point of view, it is likely you will be more tax-efficient trading via a limited company.

We can of course prepare specific calculations for you to demonstrate the savings that could be achieved using the structure and you compare both alternatives side by side to see what works best for you in your position.

If you are already earning above this level of profit as a sole trader, or not sure what is best for you and have been considering the above, please get in touch and we can provide advice around this to ensure you are not overpaying tax.

There are also some other considerations other than financial to become a limited company. One core concept is the area of business risk and minimising personal liability – you may want to look to focus the risk on the company as a separate entity, as opposed to being on you personally. It may be a case of professionalism, or credibility and trust that are prompting these conversations also.

Here at GLX, we can demonstrate the pros and cons of this structure and see if this is right for you.

Bookkeeping is the systematic recording, organising and tracking of financial transactions within a business. It is crucial for maintaining accurate financial records, ensuring compliance with tax regulations, and providing insights into your business’s financial health.

This would typically involve scanning your receipts via software into your accounting software and then matching this against your business account. We will work out with you how often you need this service and what is best for you and your business.

At GLX, we will record your transactions on accounting software either on a daily, weekly or monthly basis to ensure we are keeping your figures up to date.

Professional bookkeeping services help streamline your financial processes, reduce errors and provide timely and accurate financial reports. This allows you to make informed decisions, stay compliant with tax laws and focus on growing your business.

Outsourcing your bookkeeping allows you to focus on your business and not have to worry or dread coming back home after a long day to struggle through with your numbers. You can continue to grow your business and focus your time on what you are good at, whilst knowing your numbers are accurately prepared behind the scenes.

Outsourced bookkeeping services are suitable for businesses of all sizes and industries. Whether you’re a small startup, a mid-sized company, or a large business, professional bookkeepers can tailor their services to meet your specific needs.

Outsourcing your bookkeeping allows you to focus on your business and not have to dread the thought of coming home to go through all your numbers and spend hours putting them together.

Whether you are a hairdresser, plumber, builder, IT, or any other business, the expert team at GLX have a wealth of experience and specialise in various different sectors. We can put in place best practice systems for your business.

Typically, you’ll need to provide details of your financial transactions, including invoices, receipts, bank statements and any other relevant documents. We would guide you on the specific information required for accurate record-keeping and involve you in the process of any software and any areas we need assistance.

Primarily, this would allow you to purely concentrate on raising sales invoices to your customers and scanning receipts on your phone as you receive them, or by hitting forward on your emails for any invoices you get and that is it; we will manage the rest.

The frequency of updating financial records depends on the size and nature of your business. 

In general, it’s recommended to update records regularly, such as weekly or monthly, to ensure accuracy and provide real-time insights into your business’s financial performance. 

We do prepare a lot of bookkeeping on a daily basis so you truly have live figures, however this can be too much for smaller businesses and having access to your data once a month or quarter is sufficient and can help you drive your business forward.

We use a mixture of software and we do not offer a one-size fits all approach. 

We typically would use cloud accounting software, such as Xero, Quickbooks, Sage or Freeagent as the core software to record your day-to-day data. 

Alongside this, we use receipt scanning software called ‘Dext’ which links to your software and this can help keep all of your receipts digital so you don’t need to keep paper copies.

If you then want to take your bookkeeping further, we also then use further digital technology to be able to produce formal management accounts in order to give you timely updates on your business as and when you require this.

As of 1 April 2024, businesses that have sales of over £90,000 are required to register for VAT. This is measured over a rolling 12 months, so it is important to track your sales to see when this threshold is breached. Once you are over this threshold, you are required to register within 30 days.

You are eligible to register voluntarily for VAT however based on any level of sales.

Certain businesses are unable to register for VAT as they make VAT ‘exempt’ sales, such as a residential property business that lets out its properties to tenants.

VAT services can help your business comply with tax regulations and mitigate any penalties for non-submission, ensure accurate VAT reporting and optimise your VAT position. 

This includes identifying eligible input tax on your business expenses which you can claim back and managing VAT returns efficiently.

Although the VAT threshold is currently £90,000, sales must fall below £88,000 before you are eligible to deregister for VAT.

GLX can help you track your monthly sales and identify the point this occurs to remove you from the VAT scheme.

Most businesses will be set up to file quarterly VAT returns. This is most common and we would usually look to align this with your business year-end to keep things as simple as possible. 

The deadline to file a return and pay the VAT over to HMRC is 1 month and 7 days after the VAT period ends. If a VAT quarter ends on the 31st March for example, this has to be filed and paid by the 7th May. Some businesses however may elect to set up for monthly VAT returns – this would typically be the case where your business regularly receives a refund which will end up helping your business cash flow.

Maintaining accurate records is crucial for VAT compliance. 

Records should include sales and purchase invoices, receipts and other relevant documents. 

VAT services often assist in organising and managing these records as we use technology to help keep this digital as opposed to keeping boxes of files with old receipts.

It is essential to keep VAT records in case an HMRC VAT investigation occurs. 

HMRC will write to you requesting details of specific transactions and any queries they have regarding your return.

If you choose to use GLX for your VAT return services, you also have the option to undertake separate Tax Investigation Insurance which will allow us to manage this process for you and take any hassle away and deal with the investigation on your behalf.

Employees are eligible for SSP if the following rules apply:

• They’re classed as an employee (including agency workers).
• They’ve completed some work for the employer.
• They’ve earnt at least £123 per week on average.
• They have been ill for at least 4 days in a row (qualifying days)

The employer must be informed based on their Terms of Employment. If nothing is in place then HMRC guidance states within 7 days. SSP could be lost if the employer is not informed in time.

There are situations when no SSP is due and a SSP1 form must be completed by the employee:

• If they are currently receiving statutory Maternity Pay.
• If they have received SSP for the maximum time of 28 weeks or a continuous series of linked periods that lasts more than 3 years.
• If their average earnings are less than £123 per week.

More details can be found at: https://www.gov.uk/statutory-sick-pay.

Placing employees on an annual salary as opposed to being paid based on their hours worked may be more beneficial for both employee and employer, however, we are often asked how these are calculated:

Hourly rate: £10.42

Number of hours per day: 6.5

Number of days per week: 5

• · Hourly rate £10.42 x 6.5 number of hours worked per day = £67.73 daily rate
• · £67.73 daily rate x 5 days worked per week = £338.65 weekly rate
• · £338.65 weekly rate x 52 working weeks per year = £17,609.80 salary per annum
• · £17,609.80 / 12 months = £1,467.48 monthly salary

All employers must provide a workplace pension scheme with a minimum 5% employee and 3% employer contributions. The workforce is assessed each pay period with eligible workers automatically enrolled into the company workplace pension scheme:

This is the definition of Eligible worker:

· They are aged between 22 and state pension age

· They earn over the earnings threshold of £10,000 per year (£120 weekly/£833 monthly)

· They mainly work in the UK

Other workers are classed as either non-eligible or entitled workers, these employees must receive a letter providing them the opportunity to join the company scheme if they wish.

Pension Regulator Declaration of Compliance and 3 yearly re-enrolment duties are also legal requirements and we recommend contacting the Pension Regulator if you require further information.

A person’s tax code will usually change in the event of their personal allowance going up or down as decided by HMRC, for example, increase/reduction to taxable benefits, changing or obtaining a second job, or additional income such as receiving state or private pension.

To avoid new employees being placed on an emergency tax code, a P45 must be forwarded to the payroll provider before the first pay is processed. Otherwise, notification will need to be obtained from HMRC regarding year-to-date earnings, tax paid and correct tax code.

You can direct employees to HMRC via the employee helpline or through their personal Government Gateway, should they wish to get further details on their current tax code.

Useful Links: https://www.gov.uk/check-income-tax-current-year

https://www.tax.service.gov.uk/guidance/get-help-understanding-your-tax-code/start/where-do-you-live

https://www.gov.uk/tax-codes/emergency-tax-codes

ALL WORKERS are entitled to 5.6 weeks paid holiday a year, this includes:

• Agency workers
• Workers on irregular hours (for example those on zero-hour contracts)
• Part-year workers (for example, those who work term-time only)

It is also worth mentioning that holiday pay must be the employees’ ‘normal wages’ including all pay components they would normally earn, for example, regular overtime or performance-related bonuses must be calculated on a rolling 52-week average and paid on top of their fixed monthly salary.

However, calculating an employee’s yearly entitlement and pay can be very complex, follow current HMRC guidelines or use an HR professional to make sure you are always up to date.

GLX offers payroll packages that include holiday pay calculations for irregular-hour workers and additional holiday pay based on overtime etc. Please contact us directly for further details.

Upon starting a new role or within the company’s 3-year Pension Regulator re-enrolment duties, if an employee is eligible and automatically enrolled into the workplace pension scheme, they can choose to opt out, however, an employer must not provide any request or advice in relation to this matter.

Most Pension schemes forward a welcome pack directly to the employee’s email or home address upon receipt of the first contribution and this will provide details on how the employee opts out. 

If the scheme receives the employee’s request within one month of the first contribution, a full employee and employer refund may be provided. However, following this date, funds will remain in the plan until claimed usually at Pension age.

Personal tax refers to the taxation of an individual’s income, including earnings, investments and other sources. Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

You must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:

• You were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on).
• You were a partner in a business partnership.
• You had a total taxable income of more than £100,000.
• You had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value.
• You had to pay the High Income Child Benefit Charge.

Furthermore, you will normally also have to complete a tax return if you receive any untaxed income, such as:

• Money from renting out a property
• Tips and commission
• Income from savings, investments and dividends
• Foreign income

Personal tax and self-assessment services provide expert guidance on tax planning, ensuring compliance with tax laws and optimising your tax position.

They can help you navigate the complexities of self-assessment and reduce the risk of errors.

Even individuals with straightforward tax affairs can benefit from personal tax services. They provide peace of mind, ensure accurate reporting and can offer valuable advice on optimising your tax situation, potentially leading to tax savings.

Furthermore, having income from multiple sources can make self-assessment more complex. 

Personal tax services specialise in managing diverse income streams, ensuring that all sources are properly accounted for and reported in accordance with tax regulations.

The deadline for filing a self-assessment tax return in the UK has a formal deadline of 31st January following the end of the tax year if submitting your return electronically (31st October if you want to file via paper).

In terms of paying tax, the main deadline is also the same day, therefore any tax due is to be paid before the 31st January and for those who have higher tax liabilities, a second payment is due by 31st July also.

If your tax liability is under £3,000 and you earn money that is taxed at source i.e. a pension or PAYE income (employed role), you have the option for your liability to be taken from your tax code in the following year. This means that HMRC can take this over a period of time each month from your payslips.

Professional services from GLX, ensure timely submission, help lower your tax liabilities by identifying tax planning opportunities and help you avoid penalties for late filing.

For those individuals that have a tax liability over £1k, you will normally automatically be required by HMRC to make ‘payments on account’. This means that in addition to your tax liability for that year, HMRC will automatically assume you are going to earn similar amounts next year and therefore you will need to make payments in advance for next year – these payments are made in January and July.

When it then comes to the following year’s return, you will have already made some payments towards the tax liability.

If your income is genuinely expected to be lower in a future year, we have the ability to elect to reduce your payments on account as a result. This should only be done sparingly and if there is a genuine reason to do so, however, this can save you thousands and significantly improve your cash flow.

You will not need to make payments on account if the majority of your income is taxed at source. 

If you primarily have an employed PAYE role and 80% of your overall tax liability is already taxed at source, HMRC will not ask you to make payments on account.

Yes, personal tax services provide strategic tax planning to minimise liabilities legally.

As part of our service, we will go above the pure compliance aspect of getting your return filed by the deadline and we would look to assess your financial situation, identify potential deductions and advise on ways to optimise your tax position while staying within the bounds of tax laws. 

This may involve tax planning catch-ups prior to the tax year end to ensure we are making suitable adjustments and offering advice while the year is still live so we can actively reduce your liabilities, rather than completing this after the year-end and having to wait until the following year.

Your self assessment tax needs to be paid to HMRC.

There are a variety of ways in which you can pay HMRC, all of which can be found in detail here: https://www.gov.uk/pay-self-assessment-tax-bill.

For most individuals, we simply recommend a simple bank transfer, or which the bank details are as follows:

1. Bank Account: HMRC Cumbernauld

2. Account Number: 12001039

3. Sort Code: 083210

In terms of a payment reference, this needs to be accurate to ensure HMRC knows where to allocate the payment to your account. This will be your Unique Tax Reference number (UTR) plus the letter K at the end.

A finance director is responsible for overseeing a company’s financial operations, including budgeting, financial planning and reporting. They provide strategic financial guidance to senior management, ensure compliance with regulations and analyse financial data to make informed business decisions. A finance director can bring stability and efficiency to your company’s financial operations and contribute to its overall success.

If your company has complex financial operations, a high volume of financial transactions, or a need for strategic financial planning and analysis, you may need a finance director. 

Outsourcing a finance director can be a strategic decision for companies in various situations. It allows companies to access specialised expertise and experience without the long-term commitment and overhead costs of a full-time employee. 

It provides an opportunity to tap into the knowledge and skills of professionals who have worked with various industries and organisations. This breadth of experience can bring fresh perspectives and innovative solutions to financial management.One instance where outsourcing can be beneficial is during a growth phase. When a company is experiencing rapid expansion, it may not be practical or cost-effective to hire a full-time finance director. Outsourcing allows for flexibility in scaling up or down the financial support as needed.Another scenario where outsourcing can be advantageous is when a company is facing financial challenges. In such cases, bringing in an outsourced finance director can provide an objective assessment of the situation and offer expert guidance on how to navigate through the difficulties. 

They can analyse financial data, identify areas of improvement and develop strategies to overcome financial obstacles.

Having an outsourced finance director offers a high level of flexibility for businesses. Unlike a full-time in-house finance director, an outsourced finance director can be engaged on a part-time or project basis, which allows for greater flexibility in terms of cost and resource allocation. Businesses have the flexibility to scale their financial management needs based on their current requirements, without the need to hire a full-time employee. This flexibility also extends to the scope of work. An outsourced finance director can provide a wide range of financial services, including financial planning, budgeting, cash flow management, financial reporting and strategic financial advice. 

This allows businesses to tailor the role to their specific needs and only pay for the services they require. Overall, an outsourced finance director role offers businesses the flexibility to access high-level financial expertise and support, while maintaining cost-efficiency and adaptability.