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Adrian Mooy & Co

Welcome to our home page. We are a firm of Chartered Certified Accountants in Derby helping  business owners to be more profitable and pay less tax. For a friendly and pro-active service covering audit, tax, accounts, self assessment, VAT & payroll please contact us.


How can we help you?

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.

As business and tax advisors 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.

If you are looking for a Derby accountant to help you keep more of your income then please contact us to discuss your requirements.

  • Quality checked firm - awarded the prestigious ACCA Quality Checked mark
  • Tax optimisation - tax solutions to improve profitability
  • Keep more of your income
  • Fixed, competitive fees
  • Free initial interview
Member of the Association of Chartered Certified Accountants
Association of Chartered Certified Accountants quality checked

Blog ... our latest news

06 Nov


From April 2016 the government is introducing a voluntary framework to allow you to payroll most employee benefits in kind (BiKs).  Read >

19 Oct


UK contractors have been warned to steer clear of loan schemes using offshore trusts that promise to reduce their income tax bill.  Read >

Tax Planning for individuals

Tax Planning for Individuals

Successful individual tax planning requires careful attention across a wide range of areas and time frames.

Tax Planning for small business

Tax Planning for Small Business

Effective tax-saving strategies for small businesses operating in a tough economic climate.

Planning your financial future

Planning your Financial Future

In today's complex financial and business world everyone needs reliable and professional help managing their finances.




Web-based accounting

Xero is a web-based accounting system designed with the needs of small business owners in mind.


It can automatically connect to your bank and download your bank statements. From there it’s simple to tell Xero what transactions relate to and once told it remembers and looks out for similar transactions. This saves time and makes keeping your accounts up to date easier.


xero accounting softwareLog in from any web browser. As your accountant we are also able to log in and provide help and advice when needed.

Group Xero presentation

Xero makes keeping your accounts up to date easier.

Our process for delivering tax accounting vat self assessment and payroll services

Confirm your expectations

Our aim is  to help you maximise your business potential and we tailor our service to meet your requirements and agree a timetable for delivering them.


Our Process

Understand your needs

Firstly we listen and gain an understanding of your business and what you are aiming to achieve.

Actively communicate

Communication is important to the success of any commercial venture. It is therefore a vital part of our work with you, sharing the knowledge and ideas that help you to realise your ambitions.

Build a relationship

Success in business is based around relationships and trust. Our objective is to develop and build strong relationships with our clients, based on two way trust and respect.

Arrow indicating direction of process flow

Continuous improvement

We seek your opinions on the service we provide and respond to feedback in order to upgrade and improve what we do.

Accountants spreadsheet and calculator

Get in touch for a free initial interview.


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.    Ian Cannon - Link a Bord Ltd

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.    Eddie Morris



Business expenses

Being savvy with your expenses is a large part of running a successful business, regardless of its size. Claiming expenses is a simple way to keep your business tax efficient – it reduces your profit, which in turn reduces your tax payments. By claiming every allowable expense you’re making sure you don’t pay a penny more in tax than you have to.


For more information about exactly what expenses you can claim, see our helpsheets.


Accountant preparing tax return
  • An Introduction to the Tax System for the Self Employed

    You must register with HMRC within the first three months of self employment. There are three ways that you can register:


    •     Online –
    •     Phone – call the Newly Self–Employed Helpline on 0300 200 3504
    •     Post – download and complete form CWF1


    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 to 31.12.15)


    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 2015 have to be submitted to HMRC by the ‘filing date’ which is 31 January 2016 for on-line returns. There are automatic penalties for late filing of tax returns.


    Payment of tax - Payments on account of income tax and Class 4 NIC will be due on 31 January 2015 and 31 July 2015. These interim payments will be based on one half of the total liability for 2013-14. The balance of income tax for 2014-15 is due on 31 January 2016 (along with the first interim payment for 2015-16 and any capital gains tax for 2014-15). 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 NICs are aligned with self assessment liabilities. Profits between certain limits are subject to Class 4 NICs and payable at the same time as the installments 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.

  • 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.

  • 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


    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. If you need assistance to register as a company please contact us on Derby 202660.

  • 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.


    • 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.


    • 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.

    • 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.


    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. 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


    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 • the keeping of ltd company accounting records


    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).


    Other matters • Minutes of the first board and general meeting should be prepared • The Company should issue share certificates.

  • Useful Links 1


    Tax planning
  • Allowable / Non Allowable Expenses (Table 1)

    Category Allowable expenses
    Non allowable expenses
    Accountancy, legal & other professional fees.
    Accountants, solicitors, surveyors, architects.
    Legal costs of buying property. Costs of settling tax disputes and fines.
    Advertising & business entertainment costs.
    Advertising in newspapers, directories & website costs.
    Entertaining clients, suppliers & customers; hospitality at events.
    Bank, credit card & other financial charges.
    Bank, overdraft, credit card charges, HP interest & leasing.
    Repayment of the loans or overdrafts or finance arrangments.
    Car, van & travel expenses.
    Car & van insurance, repairs, servicing, fuel, parking, RFL, business travel & subsistence.
    Non business motoring costs (private use proportions). Costs of buying vehicles. Travel costs between home and business.
    Communications, stationery & other office costs.
    Phone, mobile, internet, postage, stationery, printing, office equipment, software.
    Non business or private use proportion of expenses.
    Construction industry payments to subcontractors.
    Construction industry payments to subcontractors. (before taking off any tax)
    Payments for non business work.
    Cost of goods that you are going to sell.
    Cost of goods bought for resale.
    Cost of goods or materials bought for private use.
    Depreciation & loss/profit on sale of assets.
    Depreciation & loss/profit on sale of assets are not allowable expenses
    Depreciation of equipment, cars etc. Losses on sales of assets
  • Allowable / Non Allowable Expenses (Table 2)

    Category Allowable expenses
    Non allowable expenses
    Insurance policy. Costs of any business
    specific policy.
    Recoverable costs.
    Interest on bank and other business loans. Interest on bank and other
    business loans.
    Repayment of the loans or
    overdrafts, or finance
    Irrecoverable debts written off. Amounts included in turnover but unpaid and written off because they will not be recovered. Debts not included in
    turnover; general bad debts.
    Other business expenses. Trade journals and subscriptions; other sundry business
    running expenses not
    included elsewhere.
    Payments to clubs, charities,
    political parties etc.; non
    business part of any
    expenses; cost of ordinary
    Rent, rates, power and insurance costs. Rent for business premises, business and water rates, light, heat, power, property insurance, security; use of home as office (business proportion). Costs of any non business part of premises; costs of
    buying business premises.
    Repairs and renewals for property and equipment. Repairs and maintenance of business premises and
    equipment; renewals of small tools and items of
    Repairs of non business
    parts of premises or
    equipment; costs of
    improving or altering
    premises and equipment.
    Wages, salaries and other staff costs. Salaries, wages, bonuses, pensions, benefits for staff or
    employees; agency fees,
    subcontract labour costs;
    employers’ NICs etc.
    Own wages and drawings,
    pension payments or NICs;
    payments for non business
  • Guide to Self Employed Expenses (Part 1)

    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.

  • Employee Business Travel Expenses Claim

    Where employees use their own cars for business mileage they can claim reimbursement from their employers through the approved mileage allowance payments rates (AMAPs). These are not regarded as a taxable benefit. There is currently a higher rate of 45p per mile for the first 10,000 miles of business use and 25p per mile thereafter.


    Where individuals are paid less than those amounts by their employer, they can claim mileage allowance relief (MAR) for the residual amount.


    If employees receive greater amounts than are allowed tax-free, they will pay tax on the excess.


    You cannot make a claim for travel to and from your permanent place of work.


    Only two types of journey count as business travel:

    - journeys that form part of your employment duties (such as journeys between clients' premises by a salesperson)

    - journeys that relate to your attendance at a temporary workplace


    If your mileage claim is below £2,500, Form P87 is used to make the claim. If your mileage claim is more than £2,500 then you must register you under Self Assessment and file a Tax Return annually.


    You can claim up to 4 years back, i.e. after 6/4/13 the following claims can be made: 2012/13; 2011/12; 2010/11 & 2009/10.

  • Partnership Agreements


    People starting up in partnership often ask whether it is really necessary to have a formal

    partnership agreement. The answer is definitely ‘Yes’.


    Basically, the agreement should set out the rules governing how the partnership operates, and should cover the main ‘What happens if ...’ situations. If there is no agreement, there will be a large element of uncertainty, and applying the underlying law, such as the Partnership Act 1890, may well lead to unwanted results.


    It is usually best to have a partnership agreement drawn up by a solicitor, but before you reach that stage you should think about exactly what you want the agreement to cover. In particular, you should consider:


    Running the business - partners’ duties, working hours and holidays, decision-making procedures, business premises, cars.


    Financial matters - profit-sharing arrangements and drawings on account, partnership capital (and interest arrangements), banking and financial arrangements, accounting arrangements, making provision for tax payments.


    Special circumstances - partner retirement procedures, death of a partner, disability of a partner, establishing the right to expel a partner, arbitration for unresolved disputes, business valuation procedures.

  • UK Resident Landlords 1

    This overview relates to a schedule A business, which is applicable to most individual landlords. Special rules apply to the rent a room scheme and to holiday lets. Hotels and guest houses are also excluded from these general rules.


    Rents & allowable expenses

    Rents less allowable expenses are taxable as part of the taxpayers total UK income. The main rule for allowable expenses is that they must be wholly and exclusively incurred in the course of the letting business. It is important to differentiate initial and capital costs from running costs. Capital costs and set-up costs, which are capitalised, are usually relieved for tax purposes against the calculation of the gain on sale of the investment property. The cost of improvements is normally treated as increasing the base cost of the investment.


    The two biggest items allowable as a deduction in calculating taxable net rental income will often be loan (or mortgage) interest and travel where the cost is attributable solely to maintaining the rental income. The lettings agent will incur other costs and as long as these represent routine maintenance these too will normally be allowable. For furniture etc in a fully furnished house a wear and tear allowance is given equal to up to 10% of the rent less certain items. No allowance is given for the initial furnishing or equipment.

  • UK Resident Landlords 2

    Basis of determining ‘rent’

    The rental income for small lettings (under £15k p.a.) is normally calculated as the cash received. Taxable rent from all other lettings are taxable on an earned or receivable basis though relief is normally given for unrecovered rental.



    Special rules apply to the treatment of losses. While profits are added to a taxpayer’s income and taxed at the taxpayers highest rates, losses generally may not be set off income from other sources other than some types of other property income. Losses may be carried forward to offset future profits, with some restrictions on the type of profits they may offset.


    Tax returns

    All UK residents with un-taxed income or profits are obliged to notify HMRC by 5th October following the end of the tax year when such income or profit first arose. Landlords must also notify HMRC when gross rental income exceeds £10,000. Unless the taxable amount is under £2,500 and HMRC can collect the tax due through the PAYE scheme, HMRC will require submission of a Tax Return. The landlord’s Tax Return must include the additional property pages. All Income Tax Returns must be filed by 31st January following the end of the Tax Year (the previous 5th April) if filed online, otherwise the deadline is the previous 31st October. The calculation of the tax liability takes into account all the landlord’s other income and allowances, and for this reason is necessarily complicated.

  • UK Resident Landlords 3

    Sale of property

    On disposal of the property any increase in value is potentially subject to capital gains tax. The gain is calculated by comparing the sales proceeds with all the acquisition costs. Some reliefs are available and there is a personal annual exempt amount. Substantial reliefs are available if the landlord has lived in the property at any time as his only and principal private residence.



    You are resident in the UK if you normally live in the UK and only go abroad for holidays and short business trips. If you believe you may be non-resident then you must pass several precise tests.


    This note is provided as a general overview. It should not be relied upon for taxation purposes, as it cannot provide a complete analysis of the law in any particular circumstance. We will be pleased to advise on any individual situation.

  • Useful Links 2


    Tax problems


Get In Touch

Whether it is answering questions, making an appointment, or pointing you in the right direction, we look forward to hearing from you.

01332 202660

61 Friar Gate  Derby  DE1 1DJ


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Adrian Mooy & Co - Accountants in Derby
61 Friar Gate Derby, Derbyshire DE1 1DJ
Phone: 01332 202660

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Adrian Mooy & Co Ltd is registered to carry out audit work in the UK by The Association of Chartered Certified Accountants.

Details about our audit registration can be viewed at under number 8011438.

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