Small Business Accountants in Chester serving Chester and Wirral
Welcome to Phillips & Co - Accountants Chester
We are a firm of Chartered Certified Accountants in Chester serving Chester and Wirral. With over 40 years experience in helping small businesses grow, we have the expertise to help your business thrive and understand the importance of communicating with clients. We know that no two businesses are the same and we use our experience to tailor our accounts, tax, bookkeeping, payroll and business services to suit each individual client. As a family-run firm, Phillips & Co – Accountants Chester are passionate about helping local small businesses succeed and be as tax efficient as possible. View our fees page.
With clients across Chester and Wirral, at Phillips & Co – Accountants Chester, we strive to provide the best possible service. We make a point of not only completing all work to a high standard but also communicating the process and our findings in a clear and concise way in a language they will understand. It is our number one priority that clients get the service they deserve and it is very rewarding and motivating when we receive positive feedback.
A few years ago I was looking for a firm of local, professional accountants that would understand myself and my business and provide the services a small business requires. I can honestly say it’s been one of the best decisions I’ve made. Phillips & Co provide not only a professional service based on sound knowledge from years of experience, but whenever I have needed help and advice they always respond immediately and informatively.
It is a pleasure to recommend the services of Phillips & Co. They have answered all my queries professionally and, to me more importantly, in a language I can understand. From a technical view point, their knowledge and understanding of my business has helped us with complex tax issues, hence saving my company money. Terry runs a very professional and friendly practice and I have no hesitation in recommending them as assets to any business.
Having worked with many accountants over the past 20 years whilst running my business, I can say without reserve that Phillips & Co have provided the most valuable, accurate and timely information of any accountants I have worked with. Questions are always answered swiftly and succinctly, allowing a degree of financial management that has really moved my business forward. I highly recommend Terry and the rest of the team at Phillips & Co unreservedly.
We’ll provide you with all the services your business needs to grow. That’s not just accounting, tax and VAT services, but a wide range of other business services too. At all steps along the way we will explain to you which services you may require and why. For costing purposes, we can then quote for each individual service or group them as part of a package, depending on client preferences. We use industry leading accounts, tax, bookkeeping and payroll software to provide the highest quality service.
As chartered certified accountants, our experience and knowledge helps us understand our clients’ businesses, allows us to work closely with them and complete accounting assignments to agreed timescales and with an agreed fee structure.
Many landlords are moving their properties into a company and purchasing any additions to their portfolio through the company. This may be the best course of action for some, however, the options need to be evaluated on an individual basis.
At Phillips & Co, Our accountants and financial advisors prepare business management accounts, budgets and forecasts. We meet regularly with our clients to provide financial advice and discuss their business development goals.
The financial aspects of running a new company, and such matters can often appear daunting. The support of a firm of experienced accountants who specialise in helping startups find their financial feet, can be priceless.
With our bookkeeping service you can go about your business safe in the knowledge that you will receive accurate and professional reporting of your business affairs using the cloud based accounting software KashFlow.
Payroll is the sum of all financial records of salaries, bonuses and deductions for an employee. From a business perspective, payroll is a key area as employees are very sensitive to payroll errors and issues.
Sole Trader vs Limited Company…which is right for your business?
Lets look at some comparisons to help you decide.
As a sole trader you are personally liable for any debt of the business.
Sole traders pay tax on their business profits via a self-assessment tax return;
The deadline for filing online self-assessment returns to HMRC is 31 January after the end of the tax year. The personal allowance for the tax year 2020/21 is £12,500;
The Basic rate of 20% tax is paid on income from £12,501 up to £37,500, the Higher rate of 40% is paid on income between £37,501 and £150,000 and the Additional rate of 45% is paid on income over £150,000;
Losses can be offset against other income in the same year, carried back and offset against previous year’s profits or carried forward and offset against future profits.
National Insurance (NI)
A sole trader pays Class 2 NI contributions of £3.05 per week and Class 4 NI contributions of 9% on profits between £9,501 and £50,000. Above £50,000 there are contributions of 2% of profit due.
Accounts and Tax Returns
Sole Traders and Partners are not legally required to file annual accounts;
They must, however, keep records of income and expenses for the purpose of completing their tax returns.
A limited company is a separate legal entity, so as a shareholder your personal liability is limited to your shareholding.
A director of a company may take a salary from a limited company and this is taxed at source under the Pay As You Earn tax system (PAYE);
Unless they have absolutely no pay or benefits then a director MUST file a tax return. This is regardless of whether tax is owed or not;
A limited company pays corporation tax on its profits which is charged at 19% from 1 April 2020 and is payable 9 months and 1 day after the accounting period end. A company tax return must be filed 12 months after the accounting period end;
The dividend allowance (the value of dividends that shareholder can receive tax free) currently stands at £2,000. For dividends above the dividend allowance the following tax rates apply: 7.5% at the Basic rate, 32.5% at the Higher rate and 38.1% at the Additional rate.
Losses can be carried forward and offset against future profits or carried back and offset against the previous year’s profits.
National Insurance (NI)
Class 1 National Insurance may be payable on directors’ salaries and bonuses depending on the level of income. Employers National Insurance at 13.8% may also be paid on directors’ salaries and bonuses.
Accounts and Tax Returns
Please see below for more details of the legal requirements of a limited company.
Thinking of setting up a Limited Company? Here’s a brief outline of what is involved…
The following information must be provided to Companies House:
Memorandum of Association – limited company name, location, business type;
Director’s names, addresses and registered limited company address;
The limited company must be said to comply with the terms and conditions of the Companies Act;
Articles of Association – director’s powers, shareholders right etc.
A director of a limited company has certain legal responsibilities, including:
Your newly set up limited company must be registered at Companies House;
Annual accounts and confirmation statements must be filed with Companies House every year;
Statutory accounts must be filed with HMRC every year;
A Corporation tax return must be completed each year and filed with HMRC.
Phillips & Co – Accountants Chester can form your limited company and complete all necessary legal requirements, leaving you with the important task of running your business.
Have a company name in mind? Click on the link below to see if it is available.
The latest tax news from Phillips & Co – Accountants Chester serving Chester and Wirral.
Government extends Tax-Free Childcare scheme due to Covid-19
10 August 2020 The government has further extended Tax-Free Childcare (TFC) to 31 October 2020 for parents who may have fallen below the minimum income requirement as a result of the coronavirus (COVID-19) pandemic. HMRC confirmed that key workers who may exceed the income threshold for the 2020/21 tax year as a result of working more due to the pandemic will continue to receive support.
The TFC scheme provides families with a £2 government top-up for every £8 they pay into their child’s account, up to the value of £2,000 per child.
Government announces next steps for Making Tax Digital
03 August 2020 The tax digitisation programme will impact lots more people including private landlords and businesses with a turnover of more than £10,000. At present, businesses above the VAT threshold of £85,000 are covered by the system, which requires them to keep digital records and provide VAT returns through software. Since it was introduced in 2019 more than 1.4 million businesses have joined the programme, submitting more than 6 million returns. From April 2022, the programme will be extended to all VAT-registered businesses.
Small business confidence begins to bounce back
28 July 2020 Confidence in the UK’s small business sector is starting to bounce back, according to a quarterly survey conducted by Hitachi Capital Business Finance (HCBF). The HCBF survey reported that the number of UK small businesses predicting growth has almost doubled in just three months, from 14% to 27%.Following last quarter’s report, which saw the percentage of small business owners predicting growth plummeting from 39% to just 14%, the new findings show the highest quarter-on-quarter rise in five years. The IT/telecoms sector predicted growth at 44%.
Serving Chester and Wirral. Please provide your name, email address and a message detailing the services you may require, basic information about your business and by which method you would like us to contact you.
The information on this website is intended for guidance only. It is based upon our understanding of current legislation and is correct at the time of publishing. No liability is accepted by TPP Accountants T/A Phillips & Co Chartered Certified Accountants for actions taken in reliance upon the information given. Furthermore, this website contains links to external sources of information which we believe you will find useful. However, we are not responsible for the content or integrity of any external websites and, as such, accept no liability for any viruses or malware connected to those sites and any resultant damage caused. Phillips & Co – Accountants Chester.