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Author: Alison Harrison

2024 Personal Tax Returns

You must submit a Personal Tax return if, in the last tax year (6 April 2023 to 5 April 2024), you were:


  • self-employed as a ‘sole trader’ and earned more than £1,000
  • a partner in a business partnership


We will require the following information, in order to complete your tax return, original documents where possible.

  • P60
  • Any P11d benefits
  • Property income
  • Savings income (even if less than £1,000)
  • Capital gains
  • Pensions
  • Dividend vouchers
  • Sole trader accounts
  • CIS deduction statements (if self employed)
  • Student loan statement
  • Child benefit figure received
  • Non-resident information

If you are registered on our Online portal, through Accountancy Manager, we will be uploading a new custom form to make giving us this information quicker and easier.


What Does Your Account Manager Do

Below is a guide to just some of the tasks that your Account Manager might undertake before your draft accounts can be prepared.

Enter all sales and purchase invoices and receipts onto relevant software (unless this is done by the client).

Ensure that payment has been received for all sales invoices. Check with the client if any payments to the client remain outstanding.

Ensure that all purchase invoices have been paid. Check with the client if any invoices appear to be unpaid.

Complete a bank reconciliation (if there is a business bank account).

Reconcile the VAT paid if VAT-registered, to ensure that the correct VAT has been paid.

Monitor sales to ensure that a client is registered for VAT if the VAT threshold is reached.

Reconcile the PAYE if PAYE-registered, to ensure that the correct PAYE has been paid.

Reconcile CIS if registered for CIS, to ensure that CIS payments are up to date and that the correct amount has been paid.

Check with client as to whether there are any expenses that we should expect to see in the draft accounts, but appear to be missing, e.g. mileage, phone and internet use.

Submit VAT if VAT – registered (unless client does this).

Submit CIS if CIS – registered (unless client does this).

Prepare CIS deduction statements for sub-contractors.

Add payroll journals to the appropriate software package used by or, on behalf of, the client.

Prepare management accounts to show client how the business is doing at a certain point in time, including calculating an accrual for how much Corporation Tax is due at that point in time. Prepare working papers at the end of the financial year, from which the draft accounts will be prepared.

Check allocation of any dividends and issue dividends where appropriate to cover an overdrawn Director’s Loan Account.

Answer any client queries as they arise.

Use the above information as a starting point in the preparation of the client’s personal tax return.

Please contact your Account Manager if you have questions regarding any aspect of the above information.




How well is your business doing?


There are a number of different ratios that can be used by companies to help them measure and analyse their performance. The ratios are often compared to previous year’s performance as well as the average results for your industry. This can then be used to measure how well you may be doing in different aspects of your business. There are 5 different categories of ratios that each ratio falls under. These are: profitability ratios, market ratios, debt ratios, activity ratios and liquidity ratios.

Profitability ratios are probably the most commonly used ratios, they measure how a company would use its assets and how it controls its expenses to produce a good rate of return. Market ratios are used to show the return on investment for the business. They are often used when trying to sell a business to show potential investors that the company is worth buying into and will be profitable. Debt ratios are often used to measure how quickly a business can pay off any long tern debts, for example a bank loan or mortgage. Activity ratios are used to measure whether a business is getting the most out of their resources and also whether their cash is being utilised. Liquidity ratios are used to measure whether a business is capable of paying of their debts, for example a business may have a lot of cash in the bank but if their liabilities are higher than their assets then their company is not liquid.

You do however need to be careful when using any single ratio as it will never give you the full picture of how well your business may be doing. An example of how this may happen is if you use the gross profit margin ratio  and compare it to the net profit margin ratio.

A simple example of this is shown below.

Looking at the results above you can see two very different results but they are both correct so must be used correctly. If for example you had set a target at the beginning of the year to make a 25% profit. If you were to use the gross profit margin you can see that the profit you have made would be 30% which is great as it looks like you have beaten your target. However as you are able to see this doesn’t show you the full picture as the 30% doesn’t include any of your expenses. When you take your expenses into account you can see that your profit margin falls to only 5%.

Another ratio that is good to use is the current ratio  (also known as the working capital ratio). This is one of the basic liquidity ratios as it simply uses the company’s current assets to see if they would be able to cover their current liabilities. An example of this is shown below:

As you can see in this example the company’s current ratio is 2.0. This means that for every £1 of liabilities that they have, it is covered by £2 worth of assets. A common rule of thumb that is used is that if you have at least a 2.0 current ratio your company is often in a good position.Facebooktwitterredditlinkedinmail

What is reportable on a P11D

  • Assets transferred to an employee – this could cover things like computers, televisions, furniture etc
  • Assets available to an employee at their home such as television, computer, broadband. They don’t have to be reported if solely for business use or personal use is insignificant.  Mobile phones are now exempt
  • Pecuniary payments which would include paying personal bills, rent, parking fines for their own cars, speeding fines for all cars and payment of professional subscriptions unless the professional body is on HMRC’s list of approved bodies
  • Mileage – can claim 45p for up to 10,000 miles, over that should claim 25p. Anything over that should be reported.
  • Company cars – only exemption are pooled cars which must be available to all employees and stay on the premises at night
  • Fuel – The most straightforward way of dealing with fuel is to pay for it personally and claim it back under the advisory fuel rate. Fuel cards are reportable with the employee then claiming the business part back.  Alternatively you could be given a car allowance through the payroll and be taxed at source.
  • Vans – Only reportable if there is unlimited private use and fuel. Normal commuting is acceptable
  • Beneficial loans – these include season ticket loans, credit cards and overdrawn director’s loan accounts. The overdrawn director’s loan account is reportable on a P11D in the year it occurs if it over £10k and still outstanding 9 months and one day after year end unless interest is paid at the official rate for every day outstanding.
  • Private medical insurance
  • Various expenses – Entertaining is a bit of a mine field. A birthday present would be deemed to be a “trivial expense” (ie under £50 on any one occasion), the annual Christmas party is OK up to £150 per head as long as everybody is invited but going to Costa for an appraisal is reportable.  The rules around subsistence are £5 for breakfast if you leave home before 6am, £5 for a meal if at least 5 hours on business, £10 for 2 meals for 10 hours on business and a late meal rate of £15 for finishing work after 8pm.  The cost must have actually been incurred.  These are only available for staff whose working patterns do not usually fall this way.  There is a maximum of 3 meals per 24 hours and you can no longer stay with family and friends and still claim the allowance.

Childcare Vouchers and Tax- Free Childcare

Childcare voucher schemes allow an employee to receive childcare vouchers in lieu of up to £55 per week of their wages and no tax or national insurance will be paid on this.  However, this scheme was closed to new applicants with effect from 4th October 2018 (although the scheme continues to run for successful applicants prior to that date, provided certain conditions are met).

The government has introduced a new childcare scheme, called Tax-Free Childcare.   This could provide up to £500 every 3 months, up to £2000 per year, to help with childcare costs for each child.  The funds must be used for approved childcare.  Therefore, the childcare provider must be signed up to the scheme.

To qualify for Tax-Free Childcare, the claimant and partner must be in work for 16 hours a week. Single claimants may also apply. It is possible to claim if on sick leave, annual leave or parental leave (although it is not possible to claim for the child for whom the parental leave is being taken).   If the claimant is not working but the partner is, then it may still be possible to qualify if in receipt of certain benefits or allowances.

Child(ren) are eligible up to 1st September following their 11th birthday.  Adopted children are also eligible, but foster children are not.  If a child is disabled, then it may be possible to qualify for Tax-Free Childcare for longer.

It is possible to receive Tax-Fee Childcare at the same time as receiving 30 hours free childcare if eligible for both.  However, it is not possible to receive Tax- Free Childcare at the same time as receiving Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers (if already in receipt of childcare vouchers prior to 4th October 2018).

The HMRC website has a “childcare calculator” link, designed to help work out whether Tax – Free Childcare is the best option, as opposed to other benefits.  It is also possible to apply online for Tax – Free Childcare, again through the HMRC website.

Please contact Tracy if you would like any further information on this.


Payroll headache?

Outsourcing your payroll can save you time and money and will ensure you are compliant with all legislation


All data must now be submitted to HMRC before or on each payday and in real time. Failure to do so can result in fines. By outsourcing your payroll to Harmonea you can be sure that all your data is submitted to HMRC as and when required.


Our aim is to provide professional, accurate and timely payroll support. We tailor our product to match each client’s individual needs and ensure you will never miss a PAYE deadline again.Facebooktwitterredditlinkedinmail

Employment matters

Taking on employees can be a real headache and the legislation can be a mine field.  Have your employees all got up to date contracts?  Do you need some help and support?  Get in touch with us and we can introduce you to some of our excellent contacts.


When do I need to submit my VAT return?

You usually submit a VAT Return to HM Revenue and Customs every 3 months.

Action                                                                         Deadline

Submit Online VAT return                                          7 calendar days after the standard deadline – extended deadline

Payment Online                                                           7 calendar days after the standard deadline – extended deadline

Payment by DDM                                                        3 bank working days after the extended deadline

For example:

Return period                 Paper return         Online return       Pay online                        Pay by DDM

30 April                31 May                   7 June                    7 June                    10 JuneFacebooktwitterredditlinkedinmail

When do I need to pay my Corporation Tax?

Annual Accounts and Corporation Tax

After the end of its financial year, your private limited company must prepare:

You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs.

Action                                                                         Deadline

File first accounts with Companies House               21 months after the date you registered with Companies House

File annual accounts with Companies House           9 months after your company’s financial year ends

Pay Corporation Tax                                                      9 months and 1 day after your ‘accounting period for Corporation Tax ends

File a Company Tax Return                                         12 months after your accounting period for Corporation Tax endsFacebooktwitterredditlinkedinmail

Personal Tax Accounts

HMRC are keen for individuals to set up their own personal tax account. It should take about 10 minutes and you will need to identify yourself, so have your NI number to hand and a copy of either your P60 or latest payslip. Once you have set yourself up you can use the account to;

  • check your Income Tax estimate and tax code
  • fill in, send and view a personal tax return
  • claim a tax refund
  • check and manage your tax credits
  • check your State Pension
  • track tax forms that you’ve submitted online
  • check or update your Marriage Allowance
  • tell HMRC about a change of address
  • check or update benefits you get from work, for example company car details and medical insurance
  • find your National Insurance number

If you are self employed you can use it to;

  • find out your Unique Taxpayer Reference (UTR)
  • read any secure messages
  • file your Self Assessment
  • see and print your tax calculation
  • appeal a Self Assessment late filing penalty
  • tell HMRC you’re no longer self-employed
  • see your HMRC Annual Tax Summary online
  • apply to reduce your payments on account if your circumstances change