Cloud Accounting

Cloud accounting is the practice of using an accounting system that’s accessed through the internet.” Because of cloud accounting you can access your records from anywhere and on any device that has an internet connection through an app or web browser. Along with this, it also supports multi-users with which data can be accessed by different users.

Awan & Co Accountant Guide

Our comprehensive range of financial and business support services and ongoing strategic advice has helped many of our clients to grow and develop their businesses over the years.

Our aim is to provide a professional, personal, effective solution to all of your day-to-day accounting, auditing and taxation needs. We use our expertise to complete this work quickly and accurately, and our experience to explore opportunities and identify potential problems before they arise.

By getting to know you and your business we aim to become a valuable member of your team. We always aim to exceed your expectations and go that step further.

Tax Rates Table 2020-21

Personal Income Tax Rates:

Band Taxable income Tax rate
Personal Allowance Up to £12,500 0%
Basic rate £12,501 to £50,000 20%
Higher rate £50,001 to £150,000 40%
Additional rate over £150,000 45%

Capital Gains Tax allowances
You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The Capital Gains tax-free allowance is:

£12,300
£6,150 for trusts

Payroll

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VAT

If you’re registered, you have to charge VAT when you make taxable supplies.

What qualifies and the VAT rate you charge depends on the type of goods or services you provide.

No VAT is charged on goods or services that are:

exempt from VAT
outside the scope of the UK VAT system
This guide to goods and services and their VAT rates is not a complete list. You can see a full list of VAT notices for goods and services not included in this guide.

VAT rate conditions
These rates may only apply if certain conditions are met, or in particular circumstances, depending on some or all of the following:

who’s providing or buying them
where they’re provided
how they’re presented for sale
the precise nature of the goods or services
whether you obtain the necessary evidence
whether you keep the right records
whether they’re provided with other goods and services
Other conditions may also apply.

There are also specific VAT rules for certain trades such as builders and charities that affect how you account for VAT, how much you must pay and how much you can reclaim.

International trade
Goods exported outside the UK and the EU, or sent to someone registered in an EU country are zero-rated, subject to conditions. You can read more about VAT on goods sent overseas.

Self-Assessment

You must send a tax return if, in the last tax year (6 April to 5 April), you were:

self-employed as a ‘sole trader’ and earned more than £1,000
a partner in a business partnership
You will not usually need to send a return if your only income is from your wages or pension. But you may need to send one if you have any other untaxed income, such as:

money from renting out a property
tips and commission
income from savings, investments and dividends
foreign income