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Accountancy & Tax in Cardiff

Key start-up information and list of local accountants

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Cardiff Accountants & Tax Advice

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Having a good firm of accountants on your side will ensure that you have all the information and support that you need to help your business grow and flourish.

They can offer advice and help you comply with accounting and tax requirements.

If you are self employed or run a small enterprise in Cardiff, it makes sense to use an Accountant or Bookkeeper who is keen to help small business and new business start ups rather than struggle with the task yourself.

Recommended Local Partner

Huw Aled Accountants

Huw Aled Accountants

Starting a New Business?

Huw and Aled have significant experience in assisting individuals who are starting a new business.

This includes understanding how best to operate the business, either as a sole trader or as a limited company, reviewing whether VAT registration is required and registering the business with HMRC and Companies House (if applicable).

Free initial consultation

We are happy to provide a free 30 minute consultation to discuss your needs. During the Covid-19 lockdown, this can be done by phone or via web conferencing, such as Zoom, and face-to-face consultations will be available when restrictions are relaxed.

Mobile icon 029 2069 4524

Main Accounting Considerations

Sole Trader or Limited Company

One of the first decisions you will need to make is which legal structure is likely to suit your new business and this will affect your accountancy obligations.

You can read a detailed article about your various options at: Sole Trader or Limited Company?

The information below primarily relates to self-employment but if you decide to trade as a limited company, you can read more here: Running a Limited Company.

Becoming Self-Employed

You should tell HMRC as soon as you start self-employment, otherwise you may face a penalty. You are considered to have started self-employment when you have something to sell and either have a customer for your goods or services, or you are actively marketing your business.

You can let HMRC know about your self-employment by registering online for business taxes. A Self-Assessment Online account will automatically be set up at the same time. This allows you to send your Self-Assessment tax returns online. You will receive an Activation Code. You need to activate the service within 28 days. If you don’t, you will have to ask for a new Activation Code.

You can register online at https://www.gov.uk/log-in-register-hmrc-online-services/register

National Insurance

As a self-employed person, you pay a fixed amount of Class 2 National Insurance contributions (NIC). If your profits are above a certain limit, you may also have to pay Class 4 National Insurance contributions.

See Self-employed National Insurance rates for full details.

Statutory Records

It is very important that you set up a record keeping system and keep all records and supporting documents. Records for the current tax year must be retained until 31 January 2022.

You must keep records of all money coming into and going out of your business. This includes all cash, cheques and credit card transactions.

Your records should be adequate to allow you to complete an accurate Self Assessment return. You will be expected to keep a full record of:

  • All sales made and other business income, as it is earned.
  • The cost of all business expenses and purchases as you pay them, no matter how little they cost.
  • All purchases of business stock, goods and raw materials.
  • Mileage records.
  • Capital expenditure; keep a separate record of all purchases and sales of business equipment, machinery and vehicles, together with the receipts.
  • Keep a record of the market value of equipment or vehicles introduced into the business that you owned before starting your business.

See Business records if you're self-employed for full details.

Key Dates

There are key dates that you need to be aware of during the financial year. These relate to reporting and payment of any monies due. A list of dates and full explanation can be found here.

Value Added Tax (VAT)

You must register for VAT if:

  • Your taxable turnover exceeds the VAT threshold in any 12 month period
  • you expect your taxable turnover to exceed the VAT threshold within the next 30 days
  • you take over an existing VAT registered business as a going concern

You have 30 days from the date you meet any of these criteria to register.

Usually, VAT registration can be completed online and if you apply online, you will be enrolled automatically so that you can submit your VAT return online (there is no longer a paper version).

The current VAT threshold is £85,000; if your turnover is below the registration limit, you can choose whether to apply for voluntary registration. The standard rate of VAT currently is 20%.

See the official VAT website for full up to date details.

Cardiff Accountants

Huw Aled Accountants
Starting a New Business? Huw and Aled have significant experience in assisting individuals who are starting a new business. This includes understanding how best to operate the business, either as a sole trader or as a limited company, reviewing whether VAT registration is required and registering the business with HMRC and Companies House (if applicable). Free initial consultation We are happy to provide a free 30 minute consultation to discuss your needs. During the Covid-19 lockdown, this can be done by phone or via web conferencing, such as Zoom, and face-to-face consultations will be available when restrictions are relaxed.
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Cardiff Bookkeeping and Accountancy Services Ltd
Complete Accountancy Services for new start up businesses. Including Bookkeeping, payroll, vat, tax, company formation and a wealth of business advice.
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JDH Bookkeeping & Accounting Services Ltd
We provide all round bookkeeping services, final and management accounts, payroll services, vat returns, income tax, corporation tax and company secretarial services. We also offer bookkeeping training for businesses who want to save money by keeping it in-house. We are certified trainers of Sage 50 and offer classroom courses and have our own classroom facilities. Please contact us for a free initial consultation and we will see exactly how we can help you.
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Mail Boxes Etc
We are an independently owned business based in Cardiff. We supply a range of services for business start up or business looking to add a spring back in their step. We cover everything from business cards to setting up a virtual office. All at a great cost!
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Naunton Jones Le Masurier
We are a firm of accountants specialising in owner-managed businesses and provide a free initial meeting that gives you the opportunity to find out how an accountant can help you with your business.
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Norton Accountancy
Norton Accountancy are an established local firm of accountants specialising in small and medium sized owner managed businesses. Our services include bookkeeping, payroll, accounts and tax advice. We offer FREE initial consultations and special offers for businesses in their first years of trading to really help you kickstart your business.
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PH Accounting
Accountancy Service for Small Businesses in the Cardiff area.
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