Payroll is the process of calculating and paying employees’ salaries or wages, including deductions for tax, national insurance contributions, and other benefits. Payroll can be a complex process, particularly for businesses with multiple employees, and can require specialist knowledge of tax and employment law.

What is the difference between a balance sheet and a profit and loss statement?

admin2026-06-24T22:22:47+00:00April 5th, 2023|

What is payroll?

admin2026-06-24T22:22:55+00:00April 5th, 2023|

What is the difference between annual accounts and management accounts?

admin2026-06-24T22:22:30+00:00April 5th, 2023|

What is corporation tax?

admin2023-04-05T11:41:36+00:00April 5th, 2023|

What is the difference between sole trader and limited company?

admin2026-06-24T22:22:19+00:00April 5th, 2023|

What is self-assessment?

admin2026-06-24T22:17:11+00:00April 5th, 2023|

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Q: What is the difference between a balance sheet and a profit and loss statement?

A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time, including its assets, liabilities, and equity. A profit and loss statement, also known as an income statement, shows a company’s revenue, expenses, and profit or loss over a specific period of time, such as a year or quarter.

Q: What is the difference between annual accounts and management accounts?

Annual Accounts refer to a company’s financial statements which lawfully must be submitted to HMRC and Companies House and must be in a statutory format. Management Accounts are those prepared for key business members and can take any format, as they are only for internal use.

Q: What is corporation tax?

Corporation tax is a tax that is levied on the profits of UK companies and organizations, including any gains from selling assets (e.g. land, property or shares) that have increased in value. As of the 1 st April 2023, the current rate of corporation tax is 25% for companies with profits over £250,000. Though small businesses with profits of less than £50,000 will be required to pay 19%.

Q: What is the difference between sole trader and limited company?

A sole trader is a self-employed individual who is responsible for all aspects of their business, including finances and liabilities. A limited company is a separate legal entity from its owners and offers limited liability protection for its shareholders. Limited companies are subject to more complex accounting and reporting requirements than sole traders.

Q: What is self-assessment?

Self-assessment is a system used by HM Revenue & Customs in the UK for individuals and businesses to report their income and expenses for tax purposes. Taxpayers are required to submit a self-assessment tax return each year by the deadline, which is 31 January. Under new MTD rules some individuals are mandated to make quarterly submissions, please get in touch if you are unsure if this applies to you.

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