Common questions and answers from clients of DIY Accounting regarding the payroll software, payslips, income tax calculation that are asked by clients having never previously operated a paye system or are new to this particular payroll software package.

Much of the financial crisis in the world is caused by a lack of confidence between banks and financial institutions and their clients which are symptoms of the credit crunch not the root cause. Changing the supply and demand for oil which is the root cause would restore confidence and avoid financial turmoil.

DIY Accounting small business accounting software package is a series of accounting templates written on excel accounting spreadsheets, suitable for UK self employed business whether producing an automated monthly profit and loss account and self employed tax return form. These notes detail the typical questions and answers by clients.

Not all expenses can be claimed as valid business expenses for tax purposes. In a number of areas there is a grey area when an expense could be a business or private expense or may be a business expense used for private purposes. Tax problems can be avoided by understanding which expenses are allowed for tax purposes and which are not allowed.

Tax bills can be reduced if all allowable business expenses are included in costs and receipts retained as supporting evidence. While all business expenses can be claimed it would not be unusual for particularly inexperienced small businesses to fail to claim some business expenses due to uncertainty over what constitutes a valid business expense.

Financial record keeping and bookkeeping by small business is occasionally accurate but often produced once a year for tax purposes. By maintaining a diary, retaining all receipts and updating the accounting records on a regular weekly or monthly basis small business can seriously account for all costs and reduce the final tax bill.

HMRC published new self-employment tax returns in April 2008 to replace the previous self assessment tax returns for self employed business in the UK. The self-employment tax returns are applicable from the financial year ending 5 April 2007. Similar to the previous self assessment forms the new tax returns are in two versions, full and short returns, dependent upon the level of sales income.

From 1st April 2008 for small limited companies and 6th April for unincorporated self employed businesses in the UK the previous capital allowance structure of first year allowances and writing down allowances changes to a combination of annual investment allowances and writing down allowances.

Trained vat officers inspect company accounts on a regular basis and know exactly the types of errors likely to be uncovered. The article explains how to avoid problems by keeping accurate accounting records and the most common mistakes businesses make.

Trained vat officers inspect company accounts on a regular basis and know exactly the types of errors likely to be uncovered. The article explains how to avoid problems by keeping accurate accounting records and the most common mistakes businesses make.