HM Finance Coaching & Advisory Ltd boosts SME financial
health across Scotland and England with comprehensive
services including bookkeeping, management accounts, VAT
returns, and year-end reports. Our affordable financial training,
consultancy, and specialised tax assistance for freelancers
makes us your financial empowerment partner. Benefit from
finance and tax coaching led by our financial psychologist
expert and accountant Helen Monaghan. Discover how we can
transform your business into a more profitable venture. Choose
from 1-1 support, group membership, online courses, in-person
workshops, and published books.
Our team consists of a Chartered Management Accountant, Bronze Partner with FreeAgent and experts proficient in Xero, QuickBooks and Excel. Together, we can provide you with everything you need to know.
We’ll provide your company with annual accounts, corporation tax returns, and help your directors with their self-assessment. Our software integrates with FreeAgent, Xero, QuickBooks to save you time and money.
We make bookkeeping easy, saving you time and money. Skilled in Xero, FreeAgent, QuickBooks, and Excel.
Bespoke financial resilience training on a range of subjects covering the practicalities of accounting software and doing your UK tax returns to the mindset required for financial growth and managing your time. Delivered in person and online.
Help with VAT returns under Making Tax Digital, ensuring compliance and peace of mind. Skilled in Xero, FreeAgent, and QuickBooks.
Boost profitability, incorporate a limited company, enhance tax efficiency, or change your limited company to a community interest company.
Enhance profitability through strategic financial management, cost reduction, revenue optimization, and efficient resource allocation for sustained business growth and success.
Improve your cash flow using our 12 step method towards financial stability. Get our 12 steps guide here: 12 Steps to Improve your Cashflow – HM Finance Coaching (hmfinance.co.uk)
Ensure your business is financial resilience by diversifying income sources, maintain emergency funds, and planning strategically for long-term stability. To learn more get in touch.
If you are a sole trader who has been asked to make payments on account (which you must do when your annual tax bill is more than £1,000) you can elect to reduce them if your tax bill is likely to be lower the following year. This can either be done at the time of submitting your self-assessment, or by logging into your government gateway account and selecting to reduce your payments on account. You can also phone HMRC’s self-assessment helpline but you might have a lengthy wait!
If you have staff, or are a limited company and want to pay yourself, you need to do so through PAYE (otherwise known as payroll). Most accounting software – such as FreeAgent, Xero and QuickBooks – have a payroll facility (either built into the normal subscription, or something you have to pay a little extra for). HMRC have their own Basic PAYE Tools, which is okay (and free!) but it’s very basic. It’s less okay if you have employees who need payslips and P60s. If you are running payroll for the first time, you must also register as an employer, and then each time you want to make a payment you must process the total amount you wish to pay yourself, and/ or employee. The software will then calculate the relevant tax and National insurance to be deducted and paid over to HMRC.
If you are a limited company, you must file your corporation tax return (along with your annual accounts) with HMRC within 12 months of your financial year end. However, you must pay within 9 months, so it makes sense to file (and pay) within 9 months… You must also file your annual accounts only with Companies House, again within 9 months, but you can ask for a 3 months extension if required. If you are granted an extension, you must still pay your (estimated) corporation tax, as you will be charged a penalty and interest is you pay late, or not at all.
If you are a sole trader, you must file your self-assessment by 31st January of each year. You must also pay any tax due by 31st January each year too, so we recommend you file your tax return as early as possible (earliest is 6th April each year) and then diarise the payment. You will be charged a penalty and interest is you pay late. If you have been asked to make payments on account, you will also have a payment due by 31st July each year.
You can claim any expenditure that you personally pay out, to get the business up and running so training, software and hardware, as well as purchases required to trade efficiently and effectively. A good rule of thumb is to ask – Would I have paid for this had I not been in business? If the answer is yes, then it’s likely not a business expense. See your accountant for specific details or read our blogs
When you borrow money from your company, or pay for something personal on your company card, it must be identified as a director loan (you then owe the company this amount). Equally, if you lend your company money, or pay for a business expense from your own personal funds, it must be identified as a director loan also (the company then owes you this amount).
If the company owes you, then this is a creditor in the accounts (your accounting software will automatically do this, if you correctly identify it). If you owe the company money, this must be repaid – ideally before the financial year end or there could be a tax charge on it, for you and the company.
You must register for VAT in the UK when your sales (that’s turnover, not profit) exceed the threshold in any given twelve months. The currently threshold is £89,000 but this can change so check HMRC’s website, or with your accountant. The twelve-month period is the last twelve consecutive months from today. It is NOT your financial year.
Each business can claim any purchases that are required to get the business up and running, as well as those required to trade efficiently and effectively. This includes relevant training, software, machinery, hardware, and supplies. Expenditure will vary depending on what your company does, but a good decider is anything else that you would not have paid for, had you not been running a business. See your accountant for specific details or read our blogs
It very much depends on your needs and ambitions, as well as your financial circumstances. If you’re looking to grow, then considering a limited company would be a valid option but you might want to test the waters as a sole trader first. In fact, starting off as a sole trader (self-employed) is always a good place to start! However, if you’re looking to provide your community with a much-needed service then you might want to consider either a community interest company, or a charitable company.
