where quality trainings & practical work placements take place
WHAT IS THE ENTITY CONCEPT? This is where a business is usually seen and treated as a separate party from the business; so, the records of the business must be kept separate from the personal records of the owner of the business. The entity concept states that business transactions must be separately recorded from those … Read More
Your task: Identify 3 features of an unincorporated business Hints: Limited liability status and what this means Type of tax payments Which tax returns should be filed (self-assessment tax return or corporation tax return) What the owners are called
Unincorporated businesses are businesses that are not set up with Companies House, so these are classed as businesses and cannot be called companies. The unincorporated businesses have less stringent rules to comply with along with the tax requirements and only need to file annual tax returns with HMRC. The owners do not have … Read More
WHAT ARE INCORPORATED BUSINESSES? Incorporated businesses are set up with Companies House and are governed by the Companies Act; and these require more stringent rules to be complied with along with the tax rules to comply with. The incorporation process establishes a company which becomes a separate legal entity from its owners. They are required … Read More
WHAT IS A LEGAL STRUCTURE? Legal Structure is how an organisation is set up to operate in the eyes of the law, which affects how it pays its taxes, the degree of liability on the owners and restrictions on how it is able to operate. Your task: Identify 3 differences between incorporated businesses and … Read More
This Friday, some of our staff and students will be visiting a local charity shop to drop off clothes that have been graciously donated to us by our students and staff. If you wish to donate, please drop off your unwanted clothes to our office this week and help support local charitable causes!
WHAT IS A LIABILITY? Liabilities are things that are owed by the business which are the obligations or debts of the business. These could be classed as: · Non-Current liabilities · Current liabilities Non-Current liabilities are obligations that are owed by the business over a long period of time usually for longer than one year … Read More
WHAT IS AN ASSET? Assets are things that are owned by the business which are used to produce economic value to the business in meeting its debts and other commitments. These could be classed as: · Non-Current assets · Current assets Non-Current assets are things that are owned by … Read More
Absorption of overheads is the process by which the total cost of a production centre is charged to the cost units within that centre. Absorption of overheads is charged to cost units based on an absorption rate and this is calculated at the beginning of the period based on budgeted activity and budgeted overheads. There … Read More
The boxes on the VAT return show the following information: Box 1 VAT due in this period on sales and other outputs This contains the VAT charged on all sales and receipts for the period of the VAT return less any VAT on sales returns. This represents the total output tax. This total should be … Read More
