Business Accounts

BUSINESS ACCOUNTS

A lot of questions will come into your head when deciding what type of business you should start with. Should you start as a sole trader or as a limited company? Whichever direction you take, you need to ensure that you make the best decision so you can kick start your business in a successful manner. You will then need to be proactive in ensuring you meet requirements when your business commences its operation. Our services will guide you through each stage of this process and provide you with sound advice when making informed decisions about your business operation.

Limited Company Accounts

At Paradox, we will guide you through the process of setting up your business as a limited company. But why should you go for a limited company?

A limited company is separate legal entity, distinct from you as its owner or shareholder. This distinction gives the owner ‘limited liability’ which means your personal assets are protected if your business experiences any sort of financial difficulty such as uncleared debts. This is a major advantage of setting up a limited company due to this low risk.

There are also tax implications for limited companies where you will need to pay corporation tax as opposed to income tax on profits. Owners can also choose to take a smaller salary and receive additional income as dividends which can lead to a lower tax bill. 

There are many administrative duties when forming a limited company such as registering your company on the Companies House and filing annual accounts and reports. Our services will assist you on such duties to ensure your company is fully compliant. 

Sole Traders

We provide self-employed professionals with sound business advice and accounting services to ensure their businesses run smoothly. Are you a sole owner of a business and want to reduce the amount of financial burden that arises? 

As the name suggests, a sole trader is a self-employed individual who is the sole owner of a business. Being the sole owner means you have total control over the assets and profits of the business. Your business affairs will also be made private and you won’t have to make your accounts public but some requirements will still need to be met. Income tax will need to be paid on your business profits and you will have ‘unlimited liability’ which means you are personally liable for any debts of the business.  We will work with you to ensure your business is set up and fully compliant within HM Revenue & Customs guidelines.

Partnerships

A business partnership involves setting up a business with a minimum of 2 partners and a maximum of 20 partners. This can present a wide range of challenges especially with regards to the financial implications that result in have 2 or more partners controlling a business.
The main advantage of a partnership is that it is simple to set up and spreads the financial burden of the business however partnerships also have ‘unlimited liability’ which means all partners are personally liable for any debts of the partnership business.
At Paradox, we will support you in your partnership business set up and deal with any accounting and tax requirements. We will deal with managing your business finances and assist with individual liabilities between the partnership. We can also provide advice on partnership agreements to safeguard interests for all partners.

CIS Accounts

The Construction Industry Scheme (CIS) is a scheme that is designed to reduce tax evasion in the construction industry. It applies to contractors and subcontractors who work on construction projects in the UK.
At Paradox, we will assist in the CIS registration process and provide our clients with up to date information with the latest CIS requirements.
Contractors
Under the CIS scheme, contractors must comply with a set of guidelines in relation to hiring and paying subcontractors. At Paradox, we will ensure that you are aware of your obligations under the scheme and ensure that you are compliant with regulations.
We can provide services in CIS contractor registration with HMRC, verifying your subcontractors are registered with HMRC, ensuring contractors are paid in compliance with the CIS scheme, calculating your tax liability and any refunds due, preparing and issuing deduction statements to subcontractors and preparing and supplying HMRC with monthly statements.

Subcontractors

Under the CIS scheme, subcontractors must register with HMRC and notify them of any changes to the business immediately.  Each contractor that hires you must make a decision as to whether you are self-employed or an employee of the business. As per the CIS scheme, if you are self-employed you will need to register as a subcontractor. You will receive payments under deduction (set up by HMRC) and contractors will deduct 20% tax from your invoices and pay this to HMRC. At Paradox, we will provide advice on your chosen position and ensure that you comply with regulations set by HMRC. We can provide services in advising your status as a subcontractor or an employee, subcontractor registration with HMRC, verifying your status with HMRC on behalf of your contractor, recording business records, calculating any tax liabilities and any refunds due, and preparing self-assessment tax returns. To learn more about our services, book a free consultation. Call us on +44(0) 7543750467 or email info@paradoxaccountancy.com
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