Do you provide a free consultation?

Yes, we will be happy to meet you for a free initial consultation to see how we can help you. Please contact us.

Can you save me time and money?

We can assist you with VAT returns, payroll, cash flow forecasts, company secretarial duties, management accounts and many other areas to help reduce the burden on you. Please look at our page on business advice and support for full details.

Why should I use Simpson Wood?

We hope that having visited our website you will see that we have a good team and extensive experience which can help you in providing the advice and support that you need. Our clients value our advice and approach which you can see by visiting our testimonials page.

Is my company a small company?

In general, a small company must meet at least two of the following conditions for the current and previous year:

- Annual turnover must be not more than £6.5 million;
- The balance sheet total must be not more than £3.26 million;
- The average number of employees must be not more than 50.
For more information, please visit our audit and accountancy page.

Do my accounts need auditing?

Generally, a private company is required to have an audit unless it qualifies as a small company (see previous FAQ).
Audit thresholds for charities are more complex, but we would be happy to discuss any queries you may have on this. For more information, please visit our audit and accountancy page.

When do I have to file my accounts?

A private company generally has to file its accounts at Companies House 9 months after its year end. For more information, please visit our audit and accountancy page.

How long do I need to keep my accounting records for?

You will need to retain your records for six years after the end of the tax period to which the records apply. For more information, please visit our audit and accountancy page.

When is my tax return due and when is the tax payable?

Income tax returns need to be filed with HMRC by 31 January following the end of the tax year when filed online by us. If you are submitting to HMRC for them to calculate your liability then it must be submitted by 31 October following the end of the tax year. Income tax is payable on 31 January and if payments on account apply, on 31 July also.

Corporation tax returns need to be filed 12 months after the end of the company's accounting period. Corporation tax is payable 9 months after the end of the company's accounting period (unless quarterly payments on account apply). For more information, please visit our tax and estate planning page.

When should I register with HM Revenue & Customs?

Self Assessment Tax Returns - You will need to advise HMRC within three months of starting a business. We can take care of these requirements on your behalf, please see our page on start ups for more information. 

Corporation Tax - HMRC will send you a form to submit following the setting up of the company. We will submit this on your behalf and ensure that HMRC are aware of when your company starts to trade.

PAYE - You will need to register for PAYE if you intend to employ people. We can make all the necessary arrangements and even run the payroll on your behalf. Please take a look at our page on payroll for full details.

VAT - You will be required to register for VAT if your turnover exceeds the limits set by legislation. These change annually and can be found within the tax tables of our newsletter section. Even if you do not exceed these limits, it may be worthwhile for you to register voluntarily. Please see our page on VAT to see how we can help.

What type of business structure should I use?

There are a number of different business structures, which are summarised below. Please contact us to discuss your situation so we can advise on the best structure for you.

Sole trader - single owner of business, no legal distinction between individual and business.

Partnership - multiple owners of the business but still no legal distinction between individuals and business and the partners are jointly and severally liable for the debts of the business.

Limited Company - Shares in limited company can be owned by any number of people and/or companies. Liability of owners is limited, and the company is a separate legal entity.

Limited Liability Partnership - Offers the limited liability of a limited company with the structure and tax position of a partnership. Often used where owners change regularly such as professional practices.
For more information, please visit our tax and estate planning page.

How can you save me tax?

There are a number of ways in which we may be able to save you tax. Because of our detailed knowledge of your circumstances, we can identify possible tax planning opportunities. Please see our page on tax planning for further information and case studies or contact us to discuss your situation.  

How do you charge for Independent Financial Advice?

Our initial meeting is without cost or obligation. Fees are always agreed with you beforehand. The most important point is that it is clear at outset how much our advice/service costs. New regulations effective from 1st January 2013 prohibit commission, although it is still possible for our fees to be deducted from your investments, with your agreement of course! For more information, please visit our page on independent financial advice.

Do you advise on all financial matters?

With the exception of mortgages, we will provide you with independent advice on all financial matters, including pensions, investments, life assurance and tax planning. We will also advise companies and partnerships, as well as individuals. We are authorised and regulated by the Financial Services Authority as Independent Financial Advisors (IFAs), so we have access to virtually all products in the marketplace. For more information, please visit our page on independent financial advice.

What happens after the pension or investment arrangements have been made?

It is vital to monitor and review investment arrangements on a regular basis, as whilst every care is taken to select the most appropriate contracts and funds at outset, some funds can become uncompetitive, and need changing. Your circumstances may also alter, so we will have regular reviews with you, to ensure that arrangements continue to be competitive, and relevant to your circumstances. For more information, please visit our page on independent financial advice.

Can you act as Company Secretary?

Yes, we fulfil the company secretarial duties for the vast majority of our clients who value having us deal with all the administrative requirements with Companies House. Please see our page on company secretarial for further details.

What information do I need to set up a limited company?

Personal details of the proposed shareholders of the company and how many shares they will each have.

Personal details of who will be the directors of the company.

Your proposed name for the limited company.

Where the registered office of the company will be (We can act as your registered office address as we do for most of our limited company clients).

For more information, please visit our business advice and support page.

Should I Incorporate?

This is a complex question and there is no quick answer as every case is different. We will review your personal situation and advise on the advantages and disadvantages of incorporation. Whilst there can be significant tax savings for you, there are many other factors which need to be taken into account before deciding to incorporate. Please see our page on tax planning or contact us to discuss your requirements.

How much is my business worth if I was looking to sell it?

There are a number of recognised ways in which your business can be valued, this can be either on a profits basis or having regard to what the assets are worth. Valuations are always subjective and the stumbling point can often be the value that is attached to the goodwill of the business. Our response is always that we will have to take a look at the history and accounts and then to sit down and discuss the matter further with you. For more information, please visit our page on corporate finance.

I'm interested in exiting from the business and would like to offer the opportunity to run it to my existing management team. how do I approach this?

The sale of your business can be a difficult process to manage as usually you only have one opportunity to sell the business and this can represent years of financial and emotional attachment. The answer to selling a business quite often entails a Management Buy Out (MBO) and we will ensure the relevant information is presented to the interested purchasers in a coherent and objective way for them to be able to appraise their options. Often it will be necessary for the purchaser to take independent advice but where possible we will try to manage the sale in the best interest of all parties. We feel it is important that we are aware of your plans and always encourage you to discuss with us your long term goals in order that your business can be prepared for sale in the most favourable way. For more information, please visit our page on corporate finance.

We are looking to expand the business. what is my best route to finance this growth?

Business expansion can involve a number of different options, be it moving into larger premises or capital projects, looking to increase the capacity of the business or move into new markets. The type of finance option available really does depend upon the project under consideration. Our approach is to consider your individual case and work out what type of funding you require and who might be best to provide that funding. We have very good links with primary and secondary lenders and can always have discussions to find the solution for you. For more information, please visit our page on corporate finance.