Frequently Asked Questions

What is bookkeeping?

Monitor all revenue and expenses entering and exiting your business, verify accurate coding and categorization of transaction, and then reconcile all accounts. This ensures that your income, expenses, loans, bank accounts, credit cards and other accounts are precisely reflected in your financial reports.

What is difference between bookkeeping and accounting?

A bookkeeper is a specialist tasked with documenting and structuring a business’s financial activities, whereas an accountant utilizes the data supplied by the bookkeeper to prepare and submit statutory returns and offer financial and commercial counsel. A bookkeeper can assist with many accounting responsibilities, including the creating of financial statements, provision of financial advice, management of tax matters and additional tasks. We exclusively provide bookkeeping, VAT and payroll services.

What documents must I need to submit to you?

Typically, we require the submission of your sales invoice, receipts, bills and bank statements, we will initially assess your data before requesting any requisite information from you.

I’ve not engaged in bookkeeping for some time, could you assist me to fix my books?

Indeed, we will gladly organize your books for you. Kindly reach out to us immediately, and we will assist you in updating your accounts. Nonetheless, we may provide you with a distinct quotation, contingent upon the extent of the backlog to address.

How long do I need to keep my business account records?

Business records must be retained for six years from the conclusion of the last financial year to which they pertain, or for an extended duration if they document a transaction spanning multiple accounting periods of the company. The company has acquired an asset anticipated to endure for over six years, such as equipment or machinery.

What accounting software does Figures In use?

We exclusively specialize in QuickBooks.

When should I register as an employer with HMRC?

It is necessary to register as an employer with HRMC before commencing the employment of staff. Registration must occur before to your initial payday. Be advised that obtaining your employer PAYE reference number may need up to 5 working days or longer. Nonetheless, registration with HMRC is not permitted two months prior to the commencement of employee remuneration.

Must I have to wait until the commencement of a new tax year to change my payroll provider?

You may change your payroll provider at any point during the tax year. April is an optimal period as it marks the commencement of the financial tax year. Upon transferring your payroll to FIGURES IN, we will retain all your cumulative and year-to-date payroll data from your existing payroll provider.

Do you deal with Pension Automatic Enrolment?

Pension Automatic Enrolment presents a barrier for numerous organizations, whether larger and small, nevertheless, at Figures In, we strive to facilitate the process and minimize stress. We guide you through the Pension Automatic Enrolment procedure, regardless of whether you are approaching your stage date or have been engaged in the process for the several years.

Am I permitted to modify my payroll information subsequent to its processing?

It is anticipated that this situation will not occur, since our staff will consistently provide you with the final paycheck for your approval before to submission. Should the circumstance develop necessitating a modification of information post-payroll processing, we will be required to reprocess it and impose a fee for the additional efforts.

If I am a company manager or secretary do I still need to register as an employer?

Indeed, directors engaged in the daily activities of a limited business are regardless as both employees and employers of that entity. If compensated through conventional means, it is necessary to register as an employer with HMRC and establish a PAYE scheme.

What is RTI?

RTI denotes Real Time Information. This is the updated method for reporting PAYE, wages, National Insurance to HMRC and salaries. All employers are now required to submit a report to HMRC each time they compensate their staff.

What is UK VAT registration threshold?

The existing VAT threshold is £90,000. If your VAT-applicable turnover exceeds this threshold, you must register for VAT.

What are benefits and disadvantages of VAT registration?

Voluntarily registering for VAT may be beneficial, since it allows for the collection of VAT on taxable business supplies and goods while enabling the reclamation of VAT on business purchases. If the input tax exceeds the output tax, HMRC will reimburse the discrepancy. This is advantageous during the inception of a business when the majority of acquisitions occurs.

VAT registration may enhance your organization’s reputation and if your supplies are zero-rated, you can reclaim VAT on business purchases, leading to a refund from HMRC. However, this must be considered with the augmented efforts, as once VAT registration is obtained, your business is required to account to account for output tax on all taxable supplies, maintain accurate VAT records and accounts and submit VAT returns when requested by HMRC.

What is FRS (Flat rate Scheme)?

A method for determining VAT by applying a fixed percentage to the overall turnover instead of calculating it traditionally. This simplifies matters but may result in you remitting more VAT than you otherwise would. The rate is contingent upon the characteristics of your business.

Could we claim input VAT on expenses occurred before the VAT registration?

VAT on products purchased up to four years prior to VAT registration and services acquired up to six months before registration can typically be reclaimed, provided that certain conditions are satisfied...

You purchased the products as the entity currently registered for VAT.
The goods are extended for your VAT-taxable commercial activities.
The goods remain in your possession or have been utilized to produce other goods that you still possess.
VAT cannot be reclaimed on certain goods:
Consumables that were entirely depleted prior to your VAT registration.
Items that you have already sold or supplied prior to VAT registration.
Items associated with supply you produce that are free from VAT.

You may reclaim VAT on services acquired within the six months preceding your VAT registration, provided the following conditions are satisfied...

The services were purchased by you as the entity.
The services are intended for your VAT taxable business activities.
VAT cannot be reclaimed on the following services.
Services associated with products disposed of prior to VAT registration.
Services related to item or services that are exempt from VAT.

To claim pre-registration VAT on goods and services, a valid VAT invoice or receipt for each item is required.

If you need assistance with calculating pre-registration VAT for the online VAT form, our VAT staff is here to help you.

Reclaiming Import VAT remitted via courier?

One should refrain from reclaiming input tax without possessing the C79 document. The courier must finalize a post-import update to modify the details of the import declaration. This will subsequently generate a C79 for you.

Value Added Tax on goods provided in the UK, billed to a company located outside the UK.

Goods are eligible for zero rating alone when exported beyond the UK. If goods remain in the entity outside of the UK, a VAT of 20% must be applied.

Reclaiming VAT on imported goods intended for resale in UK?

Indeed, we will gladly organize your books for you. Kindly reach out to us immediately. And we will assist you in updating your accounts. However, we may provide you with a distinct quotation, contingent upon the extent of the backlog to be addressed.

Could we still claim input VAT with till receipts only, or without VAT invoice?

Since you are VAT registered, any suppliers are legally obligated to furnish you with a VAT invoice upon your request. This will serve as evidence to recover the VAT as input tax. A retailer’s invoice can also be issued to you, which suffices for input tax collection if the amount is below £250.

Reverse Charge VAT for digital marketplaces.

If the marketplace imposes fee and is located overseas, you will be responsible for the reverse charge on the transaction.