The Law
•All business are legally required to keep records. They are evidence of what has happened in the past.
•Generally, non-financial company records (accident book) must be kept for 5 years;
•All financial documents (bank statements, receipts) must be kept for 7 Years.
•Generally, non-financial company records (accident book) must be kept for 5 years;
•All financial documents (bank statements, receipts) must be kept for 7 Years.
Vat
•When someone charges you VAT they multiply the original ('net') price of the item or service by the VAT rate to calculate the amount of VAT to charge.
•They then add the VAT amount to the net price to give the gross price - the price you pay.
•They then add the VAT amount to the net price to give the gross price - the price you pay.
Income tax
•Businesses must pay INCOME TAX in two ways.
1.If it employs any workers, it must take the tax off their wages and pass it onto the HMR&C. This is called the Pay As You Earn system (PAYE).
●Sole traders must pay income tax on their earnings – the difference between their sales revenue and the expenses of running a business
1.If it employs any workers, it must take the tax off their wages and pass it onto the HMR&C. This is called the Pay As You Earn system (PAYE).
●Sole traders must pay income tax on their earnings – the difference between their sales revenue and the expenses of running a business