Accountants For
Electricians

While some electricians already use an accountant, the truth is that most of these - while qualified - aren't au fait with the specifics of running an electrical business.

When you work with Auditox, we supply you with a dedicated accountant who is familiar with the industry and all that it entails. You won't need to waste time explaining all the details, as they'll already be up to speed!

This immediately establishes a rapport between you that forms a foundation of mutual trust and understanding.

In addition, your Auditox accountant will offer specialist advice and support in all the following areas:

Cash Flow Forecasting

Maintaining a positive cash flow is essential for any business owner who wants to succeed.

This means keeping a close eye on the revenue that you earn (cash inflow) and expenses like overheads, maintenance, tools, materials and paying employees (cash outflow).

We will help you to monitor your cash flow carefully, which helps to identify where money is being lost. We can then form a plan of action to plug any holes and improve your financial position. By forecasting your cash flow situation, we can help you to remain profitable and plan for future growth.

Bookkeeping Services

Keeping on top of daily accounts is important if you want to remain successful and see your business grow.

However, it's easy to ignore these and delay the process in favour of other tasks. The problem is that the longer you leave it, the worse state your figures will be in when you do tackle them.

Your Auditox accountant will set up accounting software that's simple to use, making your daily bookkeeping much easier. They will train you how to use this, and you'll be able to keep tabs on your finances securely using this handy online accounting system from most devices.

Self-Assessment Tax Returns

Do you put off completing your self-assessment tax return for as long as possible? If so, you're not alone!

Thousands of self-employed workers across the UK do this every year, and many miss the deadline, resulting in fines.

The forms can be confusing, and it's often difficult to know how to answer some of the questions accurately or at all in some cases.

Your personal Auditox accountant will be available to help you through the process, providing all the information you need to complete the task swiftly and get it sent to HMRC in time. No fuss, no drama, and no fines!

Tax Advice & Tax Planning

With Auditox, you get a personal tax advisor. As well as sorting out your tax returns, your dedicated accountant will perform a thorough examination of your tax affairs to make sure you are paying the correct amount. While we all have to pay taxes, there's no sense in paying more than you have to!

Your accountant will advise you of any schemes or legitimate ways of reducing your tax bill without repercussions from HMRC. This is known as tax planning and being tax efficient, and it can save you a lot of money each year.

Annual Accounts

All businesses, no matter the size, must produce annual accounts of some form or other. At the very least, you need to set out your income and expenses, showing any profit or loss for each financial year.

If you run a limited company and you are eligible for corporation tax (see below), your figures have to be submitted to Companies House as well as HMRC.

At Auditox accounting services, we understand that dealing with this sort of task - while it's part of the job - isn't what you want to spend your time on. Work is one thing, and you enjoy your job. Compiling reports for government departments is another issue entirely; when you're not busy working, you want to spend your free time doing things you love.

We will help you to manage your time better by completing the year-end reports and sending them to the relevant departments in a timely manner. These reports aren't just for the government, though: they are great for financial forecasting

Corporation Tax

If you run or own a limited company in the UK, you will have to pay Corporation Tax. This is currently 19% for companies with less than £50k augmented profit and 25% for those with more than £250k.

There's no way around this, but you can reduce the total amount using shrewd management of your assets and profit. These include things like transfer pricing, capital gains tax relief, Enterprise Investment Schemes, and changing your company structure. These are all legal methods used by companies around the UK in order to reduce their CT bill.

The UK's tax system is one of the most complex in the world, and you might need some help negotiating this. We will be on hand to offer advice and guidance throughout the process.

Payroll & Pensions

The Construction Industry Scheme (CIS) is an HMRC initiative affecting how self-employed workers are paid in the construction industry. Basically, if you engage self-employed contractors, they are not classed as employees, and you are obliged to withhold tax from them (either 20% or 30%).

As an electrician, there may be times when you'll act as a contractor and a subcontractor at the same time: if you are hired for a construction job but contract this out to someone else, you will need to register as a contractor and pay them via CIS.

The system - as you'd probably guess - isn't straightforward, and it's easy to get confused.

We will help you negotiate the system and stay within the rules!

If you employ your staff directly, you can use the PAYE system, and we'll set up a payroll system and train you to use it.

We will also offer advice on pensions planning to ensure that you, your business and your workers are prepared for the future.

VAT Returns

Sorting out your VAT returns can be a frustrating and never-ending job.

It's never usually easy to plough through and complete the forms, and many people struggle with the terminology and the conditions. There's also an element of worry, as you don't want to incur any penalties!

Your Auditox accountant will guide you through this process, and you'll have it sorted out in no time at all.

Making Tax Digital

MTD is yet another government initiative! This one is designed to make the system more efficient and reduce physical paperwork. Essentially, all tax returns must be supplied online using software compatible with the government's system.

Our expert team will install the relevant online accounting software and train you on how to use it. There are various deadlines for different types of industry, income and employment status, but we will advise you accordingly.

Compliance

Whatever the size of your business, it's your responsibility to make sure that you comply with all government rules, guidelines and deadlines relating to your tax affairs and accounts.

This can be tricky, as the rules and legislation are constantly being reviewed and altered, and if you break one of these rules, you can be penalised. You might state that you weren't aware of the rules, but this is never accepted as a valid reason for non-compliance!

Auditox will check the rules to help you stay compliant and avoid any repercussions from HMRC.

Setting Up A New Business

Starting up a new business is as nerve-racking as it is exciting: there's a lot to consider, and vital steps and procedures are often overlooked.

Getting off to a good start is essential to your future success, as around one in five small businesses will fail within the first year.

We will guide you through the process of setting up your electrician's business and help steer you towards financial success. We'll be there at each step to ensure that nothing is missed and that you get the best possible start.

This includes registering your business with Companies House and/or HMRC and providing expert advice on company structure, business planning and accounting procedures.

IR35 (Off-Payroll Working)

In simple terms, IR35 is all about making sure that contractors pay roughly the same amount of tax and national insurance as employees. The government suspected that some companies and individuals were using a loophole to pay less, and this legislation was introduced to put a halt to it. So, in the eyes of the government, it is anti-avoidance tax legislation.

The truth is, however, far more complicated, and IR35 has led to a lot of confusion and annoyance among freelancers, sole traders and the self-employed in general. Why is this? Aside from built-in flaws in the system (like one where a company can be charged four times as much tax as it should!), if you happen to fall inside the IR35 scheme, you'll be taxed as an employee, but you won't share the same rights as them.

This means that you are not entitled to paid annual leave, paid sick leave, pension contributions, etc. You are also restricted as to what you can claim in expenses.

The trouble is that many electricians act as contractors, working for a client through an intermediary, while at other times, the setup is different.

Your dedicated accountant from Auditox will analyse your individual circumstances to see where you stand in relation to the IR35 rules and will advise you accordingly.