FAQ

frequently asked questions

You can learn more from our asked questions

How often should I do bookkeeping?

Ideally you should complete your bookkeeping no less than monthly, but we prefer to do it for our clients on a weekly basis at the very least.

Does my bookkeeper need to be local?

No! Using cloud accounting software, such as Xero, means that modern bookkeepers can manage your business finances in real-time from their own office, rather than you having to wait for them to go into your office. They can access your finance information from their own office and keep your books accurate and up-to-date at all times, which in turn helps you make better business decisions, and your bookkeeper can identify and resolve any issues as soon as they arise.

How much is PAYE and National Insurance?

The amount you pay depends on how much you earn. Every taxpayer in the UK receives a tax-free personal allowance each year. For the 2023-24 tax year, your employees will receive a tax free earnings allowance of £12,570. This personal allowance may change depending on the circumstances of the employee, including whether they are transferring some of their personal allowance through to their partner via the marriage allowance, or if they have more than one employer. The standard rates of PAYE are 20%, 40% and 45%, and national insurance is 12% for employees and 13.8% for employers, with an additional rate of 2% for employees with the highest earnings.

How much is self assessment tax?

What self assessment deadlines do I need to know? How do I pay my self assessment tax bill? How much is self assessment tax? Self assessment tax rates are the same as being employed, so 20%, 40% and 45%. Where self assessment differs is with national insurance. When self employed, you typically pay national insurance at two different rates. Class 2 – £3.05 per week (frozen in the Budget 2021) Class 4 – 9% on profits between £9,501 and £50,000 and 2% on profits over £50,000 (profits between £9,568 and £50,270 from 6th April 2021)

What is the VAT registration threshold?

The threshold for registering for VAT is £90,000. If your VAT-able sales (sales that would normally attract VAT and are not exempt) are more than £90,000 in a 12 month period, then you are required to register with the HMRC as soon as you become aware. BREXIT has brought in some further VAT thresholds that may also affect your business.

How much is corporation tax?

Corporation tax has increased to 25% in 2023 in line with Budget announcements, for businesses with taxable profits above £250,000. Businesses between £50,000 – £249,999 will have a corporation tax rate between 19% and 25%.

What CIS deadlines should I know about?

CIS needs to be reported to the HMRC by the 22nd of the month (19th if you pay via the post). CIS should be paid to the HMRC by the 22nd of the month following the submission of your CIS return, unless you have a quarterly pay arrangement.
Brooke & Co Accounting
Fulfilling accountancy needs for all types of companies and sole traders

Accountants for:

V.A.T.
Payroll
Pensions
CIS
Bank Reconcilliation
Corporation Tax
Year End Accounts
Self Assessments

List of our main areas we cover (but not limited to)

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