HOW TO UNDERSTAND SMALL BUSINESS ACCOUNTS - PROFIT AND LOSS

[@crispindry]

Just stumbled across your channel. Really good content for a small business owner like me. Thanks.

[@HeelanAssociates]

Glad you found it useful!

[@MrZOMBIE170]

Could you do a video about the quarterly self assessment and two stupid questions does it mean an accountant would have to submit a self assessment four times a year and one at the end of the year meaning paying for five self assessment to be done and does mtd-compatible software submit the information collected to HMRC. Thanks

[@HeelanAssociates]

We can add to the list. The issue at the moment is plan seems to change every year so final format is difficult to comment with certainty. I suspect accountants will also have different offerings.

[@jaiharji4840]

Fantastic content. Could you please give your thoughts on options if a business has surplus cash and doesn't want to reinvest into the business. Savings account / Property / Shares / Money market funds etc...

[@HeelanAssociates]

Its a difficult one as us mere accountants aren't allowed to talk about anything that sounds like financial advice for things like investment - its regulated. So we tend to steer away from it here. But I guess there could be a video in some common scenarios in terms of what people tend to do structurally with the cash....

[@FANTAFRUITYTWIST]

Great video! I have a query about a UK VAT SCHEME which sounds illegal but wanted to ask you for a definitive answer. The scenario: Company A which is VAT registered, purchases goods from a wholesaler for £100 incl. VAT. Company A then sells the purchased goods to Company B (which is not VAT registered) for £1. Company B then sells the purchased goods to consumers for £120. Company A claims back the 20% VAT spent when purchasing the goods from the wholesaler (£20). Company A pays £0.20 in VAT on the goods sold to Company B. Company B pays no VAT as they are below the threshold and keeps all the profits. In this scenario I own both Company A & B. The purpose of doing this is to increase profit margins as the VAT from the wholesaler can be claimed back and little to no VAT is paid. Is this an illegal way of minimising VAT Tax? All help is appreciated 👍

[@HeelanAssociates]

In short this usually doesn't work, HMRC can force the price A charges B effectively. There are many issues here to go into a comment, but have a read here: www.gov.uk/hmrc-internal-manuals/vat-valuation/vatval07300

[@wowyummyyy]

L I K E 👍 👍👍👍👍 💯 ❣ 💯 ❣ 💯 🥰 🥰🥰

[@HeelanAssociates]

Glad you enjoyed!