Alison is 36 years old, lives in Urmston and recently opted for voluntary redundancy. Alison decided to form her own business as a self employed individual, rather than apply for a new job. After seeking advice from friends she was strongly recommended to talk to Pickard & Co, Chartered Accountants.
At the free introductory meeting at our office in Sale, Manchester, we explained all the methods by which Alison could trade, gave advice on business tax, VAT and family tax matters. At the free introductory meeting Alison decided that her best option was to operate as a sole trader. Alison trades in a low risk business and wanted to keep her affairs as simple as possible. It was not beneficial for Alison to be VAT registered and, with no employees, no payroll was required. Keeping Alison’s affairs simple was important to her.
Since Alison was trading as a Sole Trader, we needed to ensure she fully understood her potential tax liabilities and when they became payable. Class 2 National Insurance is payable monthly and is relatively a small amount. Class 4 National Insurance is paid in two instalments in January and July each year. Income tax is also paid in two instalments each year, January and July. Based on Alison’s projected profits we were able to provide estimated future tax bills for both National Insurance and Income Tax. This was of great importance to Alison.
Alison decided, due to the reputation of Pickard & Co and following the friendly free introductory meeting, to appoint Pickard & Co as her accountants.
After a few days Alison returned to our office for the bookkeeping meeting. Of the three choices, Accounts software, Computerised Spreadsheets and manual records Alison chose Computerised Spreadsheets. During this meeting the whole process of record keeping was explained and demonstrated. Additionally, many tax issues were covered including PAYE/NI, Inheritance Tax, Rental property, pensions, savings and family tax matters. After the bookkeeping meeting Alison was pleased to know that over the next six months Pickard & Co were readily available to help with any queries, a period that we call “hand holding”.