Registered as Auditors & regulated by the Association of Chartered Certified Accountants

ABOUT US

Welcome to our home page. We are a firm of Chartered Certified Accountants based in Derby and dedicated to looking after the needs of small and medium sized businesses and individual taxpayers.

If you are looking for a proactive firm to help you keep more of your income then please contact us. A meeting can be arranged free of charge to discuss your requirements.

. . . a quality checked

firm

  • A service tailored to your needs, let us sort your paperwork out
  • Quality checked firm
  • Tax optimisation
  • Keep more of your income
  • Speedy turnaround
  • Fixed, competitive fees
  • Free meetings & phone support
  • Pay by monthly standing order
  • FREE INITIAL INTERVIEW

Whilst the demands of modern business ensure that we offer a wide-ranging and innovative approach, we firmly believe in maintaining a traditional personal service.

Our clients have the confidence of knowing who is looking after their affairs and that they are able to communicate with them.

We offer a range of accountancy, auditing and taxation services and welcome new clients and those thinking of starting their own business and in need of positive and constructive advice.

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

 

SERVICES

. . . proactive business strategies

 

Using us as Your Business Advisor

Forming a Limited Company

Running your own Business

Partnership Agreements

Should you form a Limited Company

Useful PDF's

Employed or Self Employed

Tax System for the Self Employed

Which Expenses are Allowable

Which Business Structure suits you

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

FEES

. . . fixed, competitive fees

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

FEEDBACK

. . . keep more of your income

Straightforward and easy to deal with Adrian Mooy & Co provide an efficient, friendly and professional service - payroll, tax returns, annual accounts and VAT returns are always done on time.

They take all the administrative burden away from me so I can concentrate on running my business.

Eddie Morris

First class! Super accountant! We have been with Adrian Mooy & Co since 1994. They provide a prompt, accurate & reliable service. There is always someone at the end of the phone to help and advise us. They have always delivered and we are more than happy to recommend them.

Mr Ian Cannon - Armillatox Ltd

 I have found them to be very reliable and they provide good advice, so I have the peace of mind that I am doing things legally and that my tax matters are being dealt with efficiently.

Glynn Barlow - Driving Instructor

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

CONTACT

Get in touch...

We are open five days a week please feel free to call. Our office hours are 9am - 5pm Monday to Friday.

07813677069

EMAIL:
info@adrianmooy.com

ADDRESS:
61 Friar Gate, Derby, DE1 1DJ

. . . get in touch for a free initial interview

PHONE:
01332 202660

Submitting Form...

The server encountered an error.

Form received.

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

  • Allowable / Non Allowable Expenses (Table 1)

  • Allowable / Non Allowable Expenses (Table 2)

  • An Introduction to the Tax System for the Self Employed

    You must register with HM Revenue & Customs within the first three months of self employment.

     

    In calculating taxable profits you are entitled to claim deductions from your business income in respect of any expenses incurred for the purposes of trade (with a few minor exceptions).  When you buy equipment for your business, you will be entitled to deduct the full cost (up to a maximum of £500,000 per year from 6.4.2014)

     

    Tax is payable on the whole of the profits of a trade and the aim of the system is that over the lifetime of your business the profits will be taxed once, and once only.

     

    How is the tax collected? - Tax returns covering income for the year ending 5 April 2014 have to be submitted to HM Revenue & Customs by the ‘filing date’ which is 31 January 2015 for online returns.

     

    Payment of tax - Payments on account of income tax and Class 4 NIC will be due on 31 January 2014 and 31 July 2014. These interim payments will be based on one half of the total liability for 2012-13. The balance of income tax for 2013-14 is due on 31 January 2015 (along with the first interim payment for 2014-15 and any capital gains tax for 2013-14). Interest and surcharges will be levied for late payment.

     

    The self-employed are subject to a two-tier system of national insurance contributions. Class 2 contributions are aligned with self assessment liabilities. Profits between certain limits are subject to Class 4 contributions and payable at the same time as the instalments of tax.

  • Employed or Self Employed? (Part 1)

    The question as to whether someone is employed or self employed is not as straightforward as it might at first appear. Many people assume they are free to choose, but HM Revenue & Customs emphasises that this is not the case.

     

    How do you decide? - Although there is no clear-cut answer to this question, HM Revenue & Customs considers areas such as: • Ultimate control of the work • Profit element, and risk of loss • Provision of materials and equipment • Integration with the employer’s business • The intention between the parties • Usual conditions in the industry.

     

    The employer has responsibility for determining employment status.

     

    What are the practical differences? - Employees are taxed under the PAYE system and are liable to Class 1 national insurance (NI) contributions. If the worker is an employee, the employer also has to pay Class 1 NI.

     

    Employees have rights under health and safety and employment laws, such as the rights to redundancy payments and not to be unfairly dismissed. Moreover, the range of social security benefits is greater for employees than for the self employed.

     

    Self employed workers are taxed under self assessment and are allowed more scope in claiming expenses. They also pay Class 2 and Class 4 NI contributions, the combined burden of which is lower than Class 1 NI. Their ‘employers’ are not subject to NI. It is not surprising, therefore, that many businesses show a marked preference for self employment status for their workers!

  • Employed or Self Employed? (Part 2)

    What if you are wrong? - It is the responsibility of the person making the payment to get it right. If you treat a worker as self employed and he or she is subsequently ruled to be an employee, you could find that all the payments you have made will be treated as net payments, and you will have to pay the corresponding tax and employees’ NI, as well as the employer’s NI. You have no right in law to recover such items from your employees after the event.

     

    Can you create conditions to favour self employment? - If you want to substantiate a classification of a worker as self employed, we strongly recommend that you have drawn up and enforce a suitable contract defining the services provided. In line with the tests referred to above, you will need to give particular consideration to the following points:

    Pricing - One of the main requirements is that self employed workers bear some element of risk in the arrangement, which means you will have to avoid the ‘hourly rate’, in favour of a ‘price for the job’.

    Workmanship - Within reason, the more freedom the worker has in the detail of the way the work is carried out the better. You must also make it clear that the worker will have to put right any faulty work at his or her own expense.

    Substitution - One of the strongest tests of self employment is the right to substitute a worker who is equally capable of carrying out the work.

    Insurance - ll self employed workers should hold public liability insurance.

    Provision of equipment - Where practical, the worker should supply at least some of the important equipment or tools.

    HMRC have introduced an online Employment Status Indicator (ESI) tool which can be used in working out employment status of individuals or groups of workers.

  • Guide to Self Employed Expenses (Part 1)

    Whether you’re a plumber or a mobile hairdresser you’ll incur costs in running your business.

     

    Any expenses must be applicable to the running of your business. The general rule is that a self employed person cannot deduct expenses unless they are ‘wholly and exclusively’ laid out for the purposes of the trade, profession or vocation. Keeping up-to-date and accurate records from the start is important for your business.

     

    What records to keep -  Anything to do with your business such as cashbooks, invoices, mileage records, bank statements, receipts for purchases, CIS vouchers.

     

    How to keep your records - Either on paper or on computer. For electronic records you must save information in a readable format. As a general rule keep records for six years.

     

    Allowable expenses - In most cases it will be clear if something has been incurred wholly and exclusively for the purposes of business - provided a receipt has been kept as proof of purchase, a deduction should be allowed. Two tables of the most common allowable (and disallowable expenditure)  are shown below (Tables 1 & 2)

     

    However, a newly established business is often run from home, perhaps using an existing car for any business travelling that is required and an existing mobile phone for business calls. This can cause problems, because of the ‘duality’ of purpose, inherent in many such costs. It is therefore necessary that you can clearly identify and separate the expenditure between business and private purposes. In Part 2 we look at these particular elements in detail.

  • Guide to Self Employed Expenses (Part 2)

    Motoring expenses - If you use a car both for business and privately, you can claim a proportion of the running costs n the ratio of your business mileage to your total mileage. You must keep a log of business mileage as well as copies of all bills/receipts to calculate the appropriate deduction.

     

    You can alternatively use a fixed rate per business mile to compute vehicle expenses instead of keeping detailed records of actual expenditure. It is available if the annual turnover of a business is less than the VAT registration threshold.

     

    Use of home as office - Where a room at home is used wholly and exclusively for business purposes, a deduction may be claimed for a portion of: insurance, council tax, mortgage interest, rent, repairs and maintenance, cleaning, heat, light and power, broadband and telephone.

     

    Administrative costs, including mobile phone - You can deduct the administrative costs of running your business, including advertising, stationery, postage, telephone and fax. You may also be able to deduct the cost of trade or professional journals or subscriptions.

     

    Disallowed  expenses - Some expenses are never allowable for tax purposes, for example, entertaining clients, even if such entertainment directly led to new business.

     

    Private expenditure is also non-allowable expenditure - some examples: ordinary ‘civilian’ clothing, food for sustenance, having somewhere to live.

  • Should You Form a Limited Company?

    Recent tax changes have made it even more important to consider carefully, when running a business, whether it is best to trade as:

     

    • Sole trader – an individual

    • Partnership – two or more individuals or companies

    • Limited company • Limited liability partnership

     

    We are often asked, ‘Should I form a Limited Company?’ The reality is that there is no easy answer. Each situation has to be judged individually. As well as the obvious issues of tax and national insurance contributions (NICs), there are other potentially relevant factors, such as:

     

    • The nature of the business and its expected rate of growth • The degree of commercial risk

    • Administrative obligations • Personal preferences • Pensions and retirement

     

    In the early years of a business, the privacy of operating as a sole trader or partnership may be attractive. Business funds can be used at will with fewer restrictions than in an incorporated environment. However, we are considering here the features of a limited company. A company is a completely separate legal entity subject to two main areas of regulation – tax and company law. This planning guide looks at some of the advantages and disadvantages of trading as a limited company.

  • Possible advantages of incorporation

    • Incorporation normally provides limited liability. If a shareholder has paid fully for his or her shares, he or she cannot normally be required to invest any more in the company. Although companies with bank borrowings often have to provide directors’ personal guarantees, the protection of limited liability will generally apply in respect of liabilities to other creditors.

     

    • A company enjoys legal continuity - it can own property, sue and be sued.

     

    • Effective ownership or part ownership of the business may be readily transferred, subject to the provisions of the Articles of Association. Whilst such transfers may well be covered by inheritance tax business property relief, the capital gains tax position needs careful review.

     

    • Shareholders can be paid in dividends (currently free of NICs)

     

    • Growing businesses can re-invest profits after an overall tax charge of 20%.

     

    • Accumulated funds could be withdrawn on a sale of shares with the benefit of capital gains tax (CGT) Entrepreneurs’ relief which reduces the effective CGT rate to 10%.

    • Corporate status is sometimes thought to add to the commercial respectability of the business.

    • Employees may be offered an opportunity to buy their own stake in the business.

    • The National Minimum Wage does not apply to directors (as they are office holders)

  • Potential disadvantages of incorporation

    • Formation of a company incurs administrative costs.

     

    • Customers and suppliers must be informed of a change to limited company status.

     

    • The tax position arising on the incorporation of an existing business needs careful analysis. It may be possible to defer capitals gains tax on the transfer of goodwill etc.

     

    • A company's accounts must be filed on public view with the Registrar of Companies.

    • Funds withdrawn from a company normally give rise to tax liabilities.

    • Remuneration for directors is subject to both employee's and employer's National Insurance liabilities. Both the company and its directors are liable to NIC on many benefits in kind, and a form P11D must be prepared for each director, whatever the level of earnings.

    • Tax on directors' remuneration paid monthly is payable on the 19th of the following month  through the PAYE system, and corporation tax is payable nine months and one day after the end of a company's accounting period. For a sole trader or partnership, tax is generally paid by instalments on 31 January and 31 July on the current year basis.

    • Companies pay tax on capital gains at their corporation tax rate. In a company, a capital gain is reflected in the value of its shares and if these are sold a "double charge" to capital gains tax can arise.

    • An individual has greater flexibility in dealing with trading losses.

  • Forming a Limited Company 1

    It is advisable to use a formation agent for this. You first need to decide on the following:

    • Whether the company is to be a private or public company limited by shares, or a private company limited by guarantee • The purpose of the company and its capital requirements

    • Whether the proposed company name is available and acceptable.

     

    An application to form a company is made on Form IN01. This has to be accompanied by a

    Memorandum of Association (see below), the Articles and the correct registration fee.

    The Memorandum of Association is a short document, serving the limited purpose of evidencing the intention of each subscriber to form a company and become a member of that company.

     

    New Model Articles have been introduced. There are three types, as follows:

    • Private company limited by shares • Private company limited by guarantee • PLC

     

    In practice, companies can be formed using either Model Articles, Model Articles with amended provisions, or bespoke Articles. Companies incorporating as limited by shares (whether private or public) must complete a statement of capital and initial shareholdings as part of the formation documentation. The statement of capital is a new document. It is a ‘snapshot’ of a limited company’s issued share capital at a given time. It also needs to be provided is part of the application to incorporate and with each annual return.

  • Forming a Limited Company 2

    Directors - A company must have at least one director who is a natural person aged 16 years or over. For each director who is an individual, the following information must be provided:

     

    • full forename and surname, any former name(s) used for business purposes, including maiden name(s) and previous married name(s) • full service address including town, county and postcode (for the public record) • usual residential address • country/state of residence

    • date of birth, nationality, occupation • the number of shares, if any, the director is to have in the company • security items from the criteria required by Companies House (if formed electronically)

     

    Shareholders - The following information must be provided in relation to each shareholder:

    • full forename(s) • surname • full address including town, county and postcode

    • the number of shares the shareholder is to have in the company

     

    Directors’ Service Addresses - Directors (and company secretaries where applicable) of both existing and new companies now have the right to set out a service address rather than their usual residential address. The service address may be the company’s registered office.

    Individual companies have to maintain two registers of directors – one containing, amongst other

    things, a service address for each director, and a further register containing the residential address of each director (protected information).

  • Forming a Limited Company 3

    Post incorporation matters - First meeting of directors. Once you receive the Certificate of Incorporation, you should hold a first meeting of directors to deal with the following matters:

    • appointment (if appropriate) of a chairperson, managing director, and any additional directors, and approval of any employment contracts

    • issue of share certificates and, if appropriate, allotment of further shares

    • approval of banking arrangements

    • disclosure by directors of their interests in any contracts made with the Company

    • adoption of an accounting reference date • convening of a general meeting (if required)

     

    First general meeting - A first general meeting of the company is required:

    • to approve any substantial property transaction between the Company and any of its directors

    • to approve any directors’ service contracts to be entered into for terms exceeding five years

    Returns - After the first board meeting, the following returns to be made to the Registrar:

    • Form SH01 (Return of allotments of shares) • If necessary Form AA01 (change of accounting reference date). Failure to notify a change will result in the Company’s accounting reference date becoming the anniversary of the end of the month of incorporation

     

    Other matters • Minutes of the first board and general meeting should be prepared • The Company should issue share certificates • The Company’s statutory books should be written up • Shareholders should pay their share capital into the Company’s bank account.

Adrian Mooy & Co    61 Friar Gate    Derby    DE1 1DJ    (01332) 202660

 

 

What Expenses are Allowable