Ascot Drummondonline accounting for your business

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Fixed Fee Packages

Our complete fixed fee packages have been designed with the needs of the different types of small businesses in mind. If you are considering going into business for the first time and are not sure what type of company would best suit you, here are some basic guidelines.

Structure and Type of Business

At Ascot Drummond we understand that the nature of your business and your attitude to decision-making and managing risk will be reflected in how you wish to run your business. The main types of business entity are sole traders, limited companies and partnerships.

Sole traders are the simplest forms of business but don't have the tax advantages of a limited company. Records and accounts are simple and sole traders keep all the profits after tax. They are however, personally liable for any debts. A set up form CWF1 form can be completed for HMRC or a simple phone call. Sole traders make all the decisions on managing the business and raise money from personal assets and loans. Ascot Drummond can prepare your annual Self Assessment tax return and record of income and expenditure. Sole-traders are self-employed and profits are taxed as income.

In a Partnership, 2 or more people share responsibility for running a business. Each partner is self-employed and takes a share of profits. Setting up a partnership is easy but offers no protection if the business should fail. A Partnership agreement must be prepared. Partners manage the business and delegate responsibility to employees. Partners will raise money from their own assets or loans. The Partnership must keep a record of income and expenditure. Partners are taxed on their share of profits and are jointly liable for debts.

Limited Companies have a legal identity. Private limited companies do not offer shares to the public. Public limited companies must issue shares to the value of £50,000 before it can trade. The limited company is registered at Companies House and will include at least 1 director and a company secretary (optional). The Directors make the decisions about running the business, which is financed by the shareholders, borrowing and retained profits. Ascot Drummond can prepare and file your Annual Accounts with Companies House.

Profits are distributed as dividend and retained in the business. The company pays Corporation Tax and directors pay income tax on salaries and any dividends. Company finances are separate from personal finances. Ascot Drummond can prepare online Corporation Tax and Self Assessment returns.

We offer three basic fixed fee packages, tailored for the different needs of Limited Companies, Contractors and Sole Traders/Partnerships.