O'Hagan McGlinchey & Co
O'Hagan McGlinchey & Co

Office opening hours

 Monday - Thursday  

 9.00am-5.00pm

 

 Friday         

 9.00am-3.30pm

Address

O'Hagan McGlinchey & Co
32-34 Dungannon Road

Coalisland

Co. Tyrone

BT71 4HP

 

Tel: 028 87748133

 

Making an appointment

 

You can contact us on the following telephone number if you have any queries or wish to make an appointment:


Tel: 028 87748133

 

Alternatively, please use our contact form.

 

Starting a business? We can help… 



So, you are planning on starting your own business, firstly congratulations and we wish you all the best with your new venture! Secondly, have you decided how to set up? Not necessarily a straight forward decision and we would always recommend talking to us to go through your own circumstances and business. However, there are several key areas that might have a bearing on your decision, such as tax and liability. We will help you decide which option is more suited to your needs.



 

Accounts

 

Every business will need to prepare accounts:

  • Sole trader – for personal tax return purposes
  • Limited company – compliant accounts for Companies House and HM Revenue and Customs (HMRC).

 

Bank account

 

A limited company is a separate legal entity and as such must have its own bank account. Deciding which bank to choose can be daunting and the thought of paying charges be off-putting. We suggest that you take the following steps:

Decide what you want in a bank:

  • Access to a bank manager to discuss your needs
  • Overdraft facility or borrowings
  • Free banking.
  • For the first two speak to us or other local businesses: who do they bank with and would they recommend them?

 

If free banking is important to you then use an internet search engine and type in ‘free business banking’ to see what deals are to be had.

 

And remember, banks can be changed. If you are not happy with the service they give then shop around.

 

As a sole trader there is no requirement to have a separate bank account for your business. However, we would strongly recommend that you do as you can then keep business and personal transactions separate

 

If HMRC wanted to look at your records, would you want them to look at just those relating to your business or to have access to your personal records as well? If you have a business bank account then there is, in general, no need for HMRC to have access to your personal records.

 

Remember: don’t mix business and personal expenditure. Business expenditure should go through your business account and personal expenditure should go through your own account. Obviously you will need an income, but aim to keep transfers to once a month so you don’t constantly raid your business account.

 

Expenses

 

Costs that are incurred for ‘the sole purpose of the business’ are considered to be legitimate business expenses and should go through the business i.e. if it relates to the business, it is a business expense.

 

For example, these could include:

  • Stock in/out and associated delivery costs
  • Wages and salaries
  • Rent and rates
  • Advertising
  • Stationary, postage, printing
  • Insurances
  • Accountancy fees.

                                

If you have paid for business expenses out of your personal account then:

  • Set up and complete a monthly expenses form and attach all relevant receipts
  • Review what expenses you are reclaiming through the business and where possible pay for these with the business account instead (some are unavoidable, i.e. mileage claims).

 

Try not to pay for business expenses on your personal credit card:

  • Use your business debit card instead – a credit card is not an appropriate source of finance, the interest rates and potential charges are high so remember to pay it off in full each month.
  • If you have done this in error, then reclaim via an expenses form.
  • But … some expenses are part business and part personal:
  • Treat these as a personal expense and then claim the business portion back from the business via an expenses form. Remember, you will need to calculate the portion that is a business expense on a sensible basis. (Refer to our ‘Use of Home’ factsheet for some guidance in this area).

 

Record keeping

 

To understand how your business is doing it is important to keep a record of all income and expenditure to maintain accounting records. There are lots of tools and resources available to you, both online and from high street stores, and it depends on your own comfort zone as to what suits plus you need the time to keep these up to date.

The records need to be appropriate to your business, if you have few transactions then a spreadsheet will be sufficient but if your business is more complex then there are software solutions available to you.

We can help you to keep your records in order and provide you with advice as to how to do this.

We can also provide you with accurate and useful management information so that you have a true understanding of how your business is performing – this does not need to be costly, talk to us to see how we can help you.

 

Things to remember

 

  • Set aside money for your tax bill
  • Pay suppliers on time
  • Make sure your customers pay you on
  • Come talk to us at O’Hagan McGlinchey & Co … we are here to help.

 

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