Welcome to Phillips & Co – Accountants Chester
Small business accountants and tax advisors
Phillips & Co are a firm of Chartered Certified Accountants in Chester serving Chester and Wirral. With over 40 years experience in helping small businesses and landlords, 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 and landlords succeed and be as tax efficient as possible. Proud member of the West Cheshire and North Wales Chamber of Commerce.
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. We are especially proud of our 38 five star Google reviews which can be read here.
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.
Phillips & Co have supported our business with both accounts filing and advice for several years now, and they have provided us with a tailored service that suits us down to the ground. Fantastic value for money is combined with a wealth of experience and knowledge of business accounting structures and mechanisms. Their flexibility and willingness to help has ensured that our business has gone from strength to strength since we teamed up with them.
I have been using the services of Phillips & Co for a number of years for three businesses that I own, one as a sole trader, one as a partnership and the other as a limited company. I have found Phillips & Co to be extremely reliable, efficient and most importantly, easy to communicate with. I have recommended Phillips & Co to others and have had very positive feedback with a number of them engaging Phillips & Co as their accountants.
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 or 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.
Setting up a limited company?
Below is a brief outline of what would be 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
Self-employed grant to double as Job Support Scheme revamped
22 October 2020 Self-employed workers affected by coronavirus could receive up to £3,750 in the next tranche of grants, double the amount previously announced by the government. As part of the government’s ‘Plan for Jobs’, the chancellor announced an “increase in the generosity and reach of its winter support scheme” to support livelihoods in the “difficult months to come”. For the self-employed, eligible applicants will receive a maximum of £3,750 in the next round of support offered by the government. The amount of profits which will be covered under the scheme, from 20% to 40%.
Workers can claim tax relief for working at home using online portal
13 October 2020 HMRC has received over 54,800 claims from customers using a new online portal that allows employees to claim tax relief for working at home. The portal (launched on 1 October), has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the coronavirus (COVID-19) pandemic. From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. Workers will get tax relief based on the rate at which you pay tax.
Government's Job Support Scheme expanded for local lockdowns
13 October 2020 The government’s Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors due to local lockdowns as the number of coronavirus (COVID-19) cases continues to rise in some areas. Under the JSS extension the government will pay two thirds of employees’ salaries to protect jobs over the coming months. Cash grants for businesses required to close as a result of local lockdowns are being increased to up to £3,000 per month. Under the expansion, firms whose premises are legally required to shut for some period over winter.
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.