Thinking of becoming a client?
Our most Frequently Asked Questions answered here
- How quickly can you set up my company?
Simply a matter of days! From the initial consultation with your personal Business Advisor to your Company’s incorporation, it can all be done in a couple of days
- Can you help with IR35 compliance?
Yes! We provide you with up to date information and advice on exactly what IR35 is all about and how it may or may not affect you as a contractor. We have partnered with IR35 Buddy, an online portal providing a range of tools that you can use to evidence your status as being outside of IR35 and you can also see how you measure up against the new Business Entity Test.
- How do I pay myself?
Your Business Advisor will prepare a tax planning example or monthly income strategy to help you plan your finances and give you an indication / estimate of how much tax you are likely to pay. We will then run a monthly payroll for you, based on your income strategy, and will send you a payslip each month so that you know how much to pay yourself.
Our most Frequently Asked Questions answered here
- Why is there no VAT charged on my invoice?
VAT cannot be charged on invoices before your company is VAT registered therefore we do not charge VAT on any invoices until we receive confirmation from HMRC that your company has been registered and we are provided with a VAT number. Once we have these, we will ensure VAT is charged on all future invoices and also arrange a one-off VAT only invoice for the invoices at that point which are net of VAT.
- How often do I get a business snapshot?
The business snapshots are produced and emailed and available on your client portal on the 10th of each month, or nearest working day.
- Why is there no second page on my Business Snapshot?
The second page of the Business Snapshot is the “Withdrawal Advice Note” and the advice provided on this page is based on any invoices FW Accounting have raised on behalf of your company for the previous month. If FW Accounting have not raised any invoices/been provided with the required timesheets, no second page will be generated on the business snapshot.
- What expenses can I claim through my company?
HM Revenue and Customs rules state that expenses can be claimed provided they are “wholly and exclusively for the purposes of your business”. This means you can claim expenses such as; business travel and accommodation, postage, stationery, telephone calls, employer’s N.I. contributions, subscriptions, insurance, contributions to an executive pension plan, business entertainment etc.
- How often should I submit my expenses?
You must submit any expenses you incur on a monthly basis; this will help to ensure you keep on top of them and do not require us to process a back log of company expenses at a later date and at an additional fee. To enable your business bank account to be reconciled” after the line “you should still submit an expense claim form and receipt’s.
- How do I pay my expenses?
Claimable expenses are expenses that you have paid for, which are not reimbursed by your agency/client. You can claim these expenses from your Limited Company and your Company will get a corporation tax deduction for these expenses. If these expenses are paid for personally, once you submit the appropriate claim form and receipt/s to FW accounting, you should arrange to reimburse yourself for the value in which you are personally out of pocket. If these expenses are paid for using the company account, there is no need to reimburse yourself, however, you should still submit an expense claim form and receipt’s.
Reimbursable expenses are expenses that are reimbursed by your agency/client. This is normally agreed in your contract. These expenses have no tax implications for you or your Limited Company. If these expenses are paid for personally, once you submit the appropriate claim form and receipt/s to FW accounting we will raise an invoice to your client for the value of the expenses. Your client will then arrange to repay this sum back to your business bank account. Upon receiving the sum in question you should arrange to reimburse yourself for the value in which you are personally out of pocket. If these expenses are paid for using the company account, there is no need to reimburse yourself, however, you should still submit an expense claim form and receipt’s.
- How often do I get a payslip?
The payslips are generated and emailed to you on the 28th of each month, or nearest working day.
- Can I waive my dividend?
It is possible to waive your dividend, however please remember that dividends must be withdrawn according to the shares you hold, i.e. if you hold 50% of the shares you should receive 50% of the dividend declared.
If you decide to ‘waive your right’ to receipt of any or all of the dividend, then please note that this must be decided, and a dividend waiver prepared, before your company’s financial year end. HMRC will also expect there to be a commercial reason for waiving the dividend, e.g. because you are investing in the business, and not simply because you have a desire to avoid paying tax.
Dividend waivers are an area that HMRC are taking great interest in and they are actively pursuing those they believe are using waivers to avoid paying tax due.
- What do I do if I move address?
If you move address at any point please notify your account manager immediately and provide proof of address, such as a utility bill or bank statement, to satisfy money laundering regulations. FW Accounting will then notify both Companies House and HMRC of the change of address and you will be required to notify your business banking provider
- What do I do if I stop trading through my company?
The first thing you should do if your contract expires or you stop trading through your company for any other reason is notify your account manager. If you are not actively trading through the company you may be eligible to pay a reduced “in-active” fee. You may also wish to consider whether you continue to pay yourself a salary for the months in which you are not using your company. Both payroll and full service fees will continue as normal unless you get in touch with your account manager to advise of the change in your circumstances.