Specialist Accountant for Contractors, Consultants and Freelancers | IR35 expert - legally minimise your tax bill | Quarterly reviews, clear explanations, FreeAgent Expert | DM now to chat!

If you're a Ltd company service provider such as a contractor or freelancer… then the following three elements absolutely must be in place if you're to avoid a tax disaster:

1. You work with an accountant who understands the complexities and pitfalls of IR35
2. They review your records and tax situation regularly to ensure you’re legally paying as little as possible
3. They respond quickly and clearly when you ask questions so you understand your own affairs

The reality? Over half the new clients we take on get little or none of the above.

Yet the whole point of an accountant is to ensure you legally keep as much of what you earn as possible.

So when it comes to your financial affairs we have three goals for you:

👉 First, that you understand your numbers at the level you’re most comfortable with
👉 Second, you keep as much of what you earn as possible - legally, safely
👉Third, you feel looked after, advised and guided by your accountant

We deliver this because our practice culture is service-driven and uncompromising. You get

👉 quick response to enquiries - same day, mostly
👉 regular review of accounts, situations, regulations - to spot opportunities for you as they arise
👉 clear explanations of your tax situation so you always understand where you stand

Which means you’re never caught out, never wrong-footed - and always relaxed about your tax affairs.

Turns out our clients really appreciate this - meaning we have dozens of first-hand, verified testimonials on Trustpilot:

🗣“...the personal service received from Waqas over the past 2 years has enabled me to grow my business through a pandemic with confidence and clarity.”

🗣“I moved to Nexus from one of the big companies where I was just a number. Nexus provides me with a far better service for 2/3 the price. It’s more personable and I get better advice. I can highly recommend them. I also use the Freeagent portal via them and it’s a really fab piece of software. Makes everything a piece of cake.”

🗣“...not so good experience with my old accounting company, Nexus Accounting is very efficient. No more waiting 3 days for an answer to a simple question, a dedicated accountant knows your business therefore you don't have to explain your story over and over.”

If you’re a Limited Company service provider then drop me a Direct Message and let’s arrange a 10-minute, no obligations chat.

Is there any advantage to registering for VAT if your turnover is under the £90K threshold?

The answer is it depends.

Registering for VAT will make you 20% more expensive overnight. If your clients are also VAT registered, it won’t matter much but if they aren’t, this could create a problem.

There are a few potential advantages though:

1.   Credibility as a business
2.   Claiming back VAT on purchases
3.   Flat Rate Scheme – if you have minimal purchases with VAT, you may prefer to use this scheme to reduce the VAT you have to pay to HMRC.
4.   Avoid penalties if your turnover unexpectedly breaches the £90k threshold.

Does VAT accounting give you a headache?

It doesn’t have to. Chat to me about how to simplify things.

Waqas Latif FCCA

Sole trader or limited company? The age-old question that I get asked over and over.

Of course, there’s no one size fits all answer to this. A lot depends on your personal situation and how you want to take money out of the business.

Suffice to say that at around £50,000 profit a year, it’s probably more tax-efficient to have a limited company (even considering the additional costs of running the company such as filing and accounting fees).

But as I said, it depends.

Before deciding on your company structure, have a chat with an accountant to get advice on the best strategy 😀.

It’s a lot more cost efficient to set up with the right structure at the start than to have to switch later because you made a sub-optimal choice.

Don’t waste ⏰ or 💰. Chat to me today about how to structure your business.

 #Accounting #NexusContractorAccounting

4 simple steps to keep your business finances looking healthy:

1. Cashflow 🌊

Cash flow is the lifeblood of your business. If you can’t pay your bills on time, you can go under. Invoice and collect debts promptly, manage stock levels carefully to avoid holding too much inventory and keep a cash flow forecast to identify any pinch points in your cash position.

2. Profit 💰

Understand which of your products or services are most profitable and play to your strengths. There’s little point having a push on sales of a product that makes a loss or minimal profit.

3. Keep personal and business finances separate ✂️

If you’ve previously been a sole trader, it’s easy to forget that the money in the business account doesn’t belong to you; it belongs to the company. You cannot withdraw cash in the same way once you’re a limited company.

4.Tax 🧾

One thing we can be certain about in this life is that we will get taxed. You know you’ll have a tax bill if you are making profits, so plan and save each month so you don’t come unstuck in January.

What would you add to the list?

When clients say 'cooperation tax'… I wish it were a thing.

Because yes - cooperating with HMRC is strongly advised.
But no - there’s no tax on being polite, proactive, or punctual, although if there were, some of us would owe interest.

Let’s clear it up: 
Corporation Tax = tax on company profits.
Cooperation Tax = Does not exist but Co operating with HMRC can help avoid penalties.

So while you can’t deduct goodwill from your tax bill, you can avoid penalties by filing on time, replying promptly, and not calling it “cooperation tax” in front of your accountant.

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