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Accountancy & Tax in Hertfordshire

Key start-up information and list of local accountants

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Hertfordshire Business Category

Hertfordshire 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 Hertfordshire, 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

Ricson Accountancy Services

Ricson Accountancy Services

We are a small family run business who are specialists in dealing with sole traders and small limited companies.

We are a forward thinking company with cloud based solutions to give you up to date access to your company information.

We want to work with you to free up your time to build your business and spend time with family & friends

Mobile icon 01727 735250

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.

Hertfordshire Accountants

Ricson Accountancy Services
We are a small family run business who are specialists in dealing with sole traders and small limited companies. We are a forward thinking company with cloud based solutions to give you up to date access to your company information. We want to work with you to free up your time to build your business and spend time with family & friends
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BS Associate
BS Associate is one of the trusted and experienced bookkeeping service providers in London. Over time we have provided services to multiple companies and this has helped them inefficient maintenance of books. So next time when you are looking for a bookkeeping service in London, BS Associate can help you.
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Woodbridge & Co
Woodbridge and Co Chartered Accountants offer a fresh but experienced approach to accountancy. We are passionate about profit and ensuring that our customers enjoy more of their profit. Here at Woodbridge & Co we excel at understanding our customers business. As a result we are able to give sound advice which is relevant to each and every individual business. From sole-traders to limited companies we manage our customers accounts so that they get the most from their money. We want our customers to grow so that they return. We strive to make acconting easier to understand for our clients.
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Global Accountancy Services (UK) Ltd
We are one of the best small business accountants in the UK providing accounting services, company formation guidance, tax advice and support for your business need to achieve your goal. And also we offer complete accountancy services for business at an affordable price or low cost.
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JLW Tax & Business Services
We offer accounting, tax and bookkeeping services, including: business start-up advice, accounts preparation, self-assessment tax returns,corporation tax returns, VAT returns, payroll,budgeting and cashflow forecasting
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