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COGS Accountancy - frequently asked questions

Questions
answered
by our
specialist

Any questions? We’ve answered the most common ones below.

But if you need anything further, please don’t hesitate to get in touch. We would love to hear from you.

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Frequently
Asked
Questions

I would like to start a new company, is this something you can help with?

We can help setup your new company completely free of charge and guide through each step of the way to get your business up and running.


What is the best business structure for me?

We can carry out a full comparison of business structures to determine which would work best for you. 

A Limited Company is usually the best way to trade but that is not always the case and it is good to understand your options.
 


How much do you charge?

That all depends on what you want us to do for you!

We will be able to give you a full detailed estimate when we've spoken to you and understood your needs. 

We breakdown our quote in a simple and straightforward manner so you are clear on what you will need to budget.


Do I need accountancy and taxation advice?

Accountancy deals with the financial position of your business.  We tend to deal with your accountancy and taxation together. This helps for planning within your business and can improve tax efficiency and ensure HMRC compliance.

The Accounts ultimately lead to the taxation position and we tend to look at both together to get the best position.


What is bookkeeping and do I need it?

Bookkeeping is the process of recording all of your day to day transactions.

Being up to date with bookkeeping leads to many benefits in terms of knowing where you are. It ensures your compliance with submissions such as PAYE and VAT as well as record requirements. We can help you to carry out your own bookkeeping or you can hand it over to us completely. We're here to make life easier for you so just let us know what you'd prefer.

Good bookkeeping leads to faster more accurate accounts ultimately giving you more options, including on your final taxation position.


Can I do my own bookkeeping?

Yes you can. We will be happy to show you how, at no extra charge.

We believe in making the most of technology which can make our lives easier. We can introduce you to a system which does this.


Do I need to pay for Xero Training?

No, initial training for all of the major areas of Xero is included in your costs.


Can you help us to raise invoices?

Absolutely, Xero, the system we use here at Cogs allows for easy drafting of invoices, quotes and credit notes and more. We will be happy to guide you through the process at no charge.


Does raising invoices and doing my own bookkeeping in Xero reduce my cost from COGS?

Yes it does, as we won't be sorting, scanning, processing and reconciling your sales. It will also mean you’ll be more up to date and able you can see who still owes money.  Each client will have their own balance with us in terms of what they do and what we do.


How adaptive is Xero? Can i use it from different places? On my phone?

It's very adaptive and as a modern product it will do everything you expect and in our experience much more.

We are very keen to make accounting easier for our clients, that's why we use technologies and platforms like this to make the process simpler. 

Once you are set up you can access your Xero from multiple locations as long as you have your access details. There is also a Mobile app, so you can monitor your business activity on the go. 


How often do I need to deal with my accounting records?

This depends on your own situation.  For most of our clients we deal with things on a monthly basis so that you are as up to date as you can be to plan tax in the most efficient way.  This will also put you in a good position for HMRC’s incoming Making Tax Digital campaign where most annual reporting will be replaced with ongoing quarterly and monthly online reporting.


What can I claim as expenses and how does that effect my tax?

Expenses will depend on your business. Generally, any direct cost of business such as materials, office equipment and travel costs are claimable and will lead to a lower profit and usually a lower tax amount.

If you are in any doubt what you can claim speak our bookkeeping team, we are happy to help. HMRC are always updating and tweaking what should or should not be claimed and we advise our clients of any changes to their expense claims along the way.


Can I claim utility bills?

Utility Bills for a store or business premises are tax deductible expenses of the business, so please send them in with your monthly records.

However, if you use a room at home as an office, you may be able to claim a portion of your utility bills as a business expense. Whether or this is the case will vary from one client to another, so give us a call or drop in for more information. 


How are my business taxes different to personal taxes? How do they interact?

Different business structures have different taxation rules. We can help you figure out the best approach and what will benefit you most. 

Limited Company businesses will be taxed themselves and individuals will be taxed on their incomes from all sources.  We would look at the best extraction of business profits in terms of taxation on an ongoing basis.


I've had a letter from HMRC or Companies House. What do I need to do?

If you are a client send it in and let us deal with it, it is all part of the service.

If you are not a client please contact us to see how we can help.


How much will my tax bill be? What is my tax position as of now?

By collaborating with us to keep your affairs up to date we will be able to advise of your current position.

It is often appropriate to calculate year to date figures for any tax that may be due and give you a guide as to how to make sure you account for this during the year.

We will help you to manage and monitor the various taxes that apply to your particular situation.


What is my UTR number?

A UTR (Unique Taxpayer Reference) number is a 10 digit number that is unique to either you or your company. It identifies you personally with HMRC for things related to your tax obligations. You'll automatically get one when you register for self assessment or set up a limited company.


Should I be registered for VAT and how will I know?

Sometimes it is very black and white whether you should or shouldn't be VAT registered. Turnover being the number one indicator. For when it isn't so clear we can help you make the decision based on the benefits to you and where your business is heading in the future. 

You must register for VAT if business’ VAT taxable turnover is more than £83,000

Some industry revenues are not VAT taxable, but don’t worry we will be sure to discuss this with you during your take-on process.
 

You can voluntarily register for VAT if you turnover is under £83,000, unless everything you sell is VAT exempt. There may be benefits to your business in voluntary VAT registration, depending on where it is heading in the future, so don’t hesitate to raise this with a member of our team.
 


I need business advice? Do you do that? How much is this?

We can help with the many areas of business advice.

Please make contact and one of the team will get back to you. Sometimes a call is enough, sometimes it is more in depth. We provide these services for free as part of our ongoing service to our clients.


Can you help me secure a mortgage or provide other financial services?

We can certainly help plan your financial position so that you are best poised for a mortgage.

We can also help with our team of partners in terms of mortgages, pensions, insurance, life cover and a number of investment options.


To arrange a meeting call 01753 830 888

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