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FRS 18 sets out two main qualitative characteristics (relevance & reliability) and fourenhancing qualitative characteristics that information in the financial statements shouldpossess in order for the content of the financial statements to be useful to its users.When an accounting policy is to be selected, its appropriateness to the businessshould also be considered against these qualities. … Read More
Check out our latest collection of YouTube videos on Tax Processes for Business!
TAXABLE SUPPLIES HMRC indicate that the VAT Act 1994 section 4(2) provides that a taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply. This means that taxable supplies are all goods or services sold which are not within the exempt items or items outside the … Read More
An individual not in business but sold one of their personal art painting for £89,000, is a taxable person? TRUE / FALSE? FALSE So, who is a taxable person? A person or entity that carries out any economic activity and deals in taxable supplies, will be called a ‘taxable person’; whether it has registered for … Read More
WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS? Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the: · Statement of profit or loss (profit or loss account) and the · Statement of financial position (balance … Read More
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
