# Welcome to Numble You might be our new favourite person. Unfortunately, we can't stand over your shoulder showing you what to do, so we created this useful set of guides to show you how to get the most out of Numble and your accounts.
Getting StartedJust signed up to Numble? This simple set of guides will walk you through your first steps./pages/EFzkgI9hq2TTUAiTdUac/files/zUQEc2IXEhvX7BBWLDUU
Working with NumbleIdeal for relatively new clients, we'll show you how to share data with us and use your new systems./pages/VRhmA5SCd9sBKfuQy2MC/files/punP5sdZOYfoUr4BnQSX
Self Assessment Tax ReturnsNothing is certain but death and taxes - let's help you with the latter./pages/umHvFU22rfdELIkVUeab/files/k8H6NXZGQor5HPPLxM9o
Limited CompaniesSimple guides to managing your limited company, such as how to withdraw money./pages/vvh5ZR2iUy8VU7aTpCvd/files/z5Y9U7ka3qAqJhgasjGi
# Switching Accountant To Numble How to switch accountant in four steps ### #1 Resign From Your Old Accountant Find out your termination period. You'll find this on your signed contract or you can reach out to your old accountant. You should be able to terminate your agreement by email. If your accountant bills you annually, then there's a good chance you can terminate your agreement immediately. If they charge you monthly, then you'll most likely have a one month notice period. ### #2 Sign up with Numble By now you'll know what we're charging and you like what you see (and by the way, thanks!) Ask us to send you our contract and we'll send it to you on e-sign to approve online. Then we'll get started immediately. ### #3 Connect us Every new accountant should request professional clearance from an old accountant. Consider this a handshake from one professional to another. {% hint style="info" %} We'll obtain as much of your accounting data from your old accountant to save you time. {% endhint %} You can connect us with an email like this: {% code overflow="wrap" fullWidth="false" %} ``` I give you authority to send all accounting information to the team at Numble. I have copied them in and they will be in touch shortly to request professional clearance and ask for the data/information you hold about my business and my personal taxes. ``` {% endcode %} ### #4 Over to Numble! After you sign our agreement, we'll ask you to complete our 3-minute onboarding form. The form will help you to connect us to your old accountant and provide us with useful information about you and your business. We'll obtain data from your accountant and you. Our ultimate goal is to bring your accounting data up to our high standards. Within 30 days we'll ask you to pass our anti-money laundering requirements. The entire onboarding process may take a few weeks while we set up your shiny new systems and request authorisation with HMRC to file your tax returns. {% hint style="success" %} Just know that we've done this hundreds of times and we've seen everything by now, so don't worry about anything. {% endhint %} We've got this. # How To Transfer Xero To Numble Use this guide to transfer your Xero subscription to Numble. ### #1 Login to Xero
Login to Xero, click on the organisation name, select Subscription and billing, then click Manage Subscription. ### #2 Request Transfer
Click the three-dot menu icon, then select Request transfer. ### #3 Over to Numble! Enter details for Michael Campbell. Click Request transfer. # Companies House Authentication Code This code allows us to submit forms to Companies House on your behalf. We will need your Companies House Authentication code to submit accounts to Companies House. We also need it to keep your company information up to date, such as your Persons of Significant Control (PSCs), shareholder and director registers. {% hint style="warning" %} Your Companies House Authentication Code is confidential. Sharing it confers the ability to amend your register of shareholders amongst other things. {% endhint %} ## Find Your Companies House Letter When you form your limited company you will receive a letter containing your authentication code. It usually arrives within the first two weeks of incorporation.
## How Do I Request A Missing Companies House Authentication Code? ### Get it sent to your registered office address 1. Login to the [Companies House Webfiling service](https://ewf.companieshouse.gov.uk//seclogin?tc=1\&ref=numble.co.uk) or [register an account](https://ewf.companieshouse.gov.uk//runpage?page=webfilingRegister\&signUpPage.lang=en\&ref=numble.co.uk) 2. Select **Request an authentication code** 3. Enter your company registration number, which you can [lookup here](https://beta.companieshouse.gov.uk/?ref=numble.co.uk) 4. Select **Request code** Companies House will post the code to your registered office address in around 5 days. You can lookup your registered office address at [Companies House](https://beta.companieshouse.gov.uk/?ref=numble.co.uk). ### Ask Numble to request a code We can request your authentication code without you having to set up an online account. Feel free to ask! ### Change the address and then request a code If you've lost your code and do not have access to your registered office address you'll need to [send an AD01 paper form to change your address](https://www.gov.uk/government/publications/change-a-registered-office-address-ad01). It must be signed by a director. Then you can follow the steps above. ### Check elsewhere If you used a formation agent like Companies Made Simple to create your company, then you may be able to find your Companies House Authentication Code in your online account. This might be easier than waiting for a code in the post or sending a paper form. # Employer Reference Codes Payroll codes given to new employers You will receive your Employer PAYE Reference and Accounts Office Reference when you register for payroll. We'll need both of these codes to send payroll submissions to HMRC and administer your pension scheme.
If you do not know your Employer PAYE Reference or your Accounts Office Reference then you should [contact HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs/contact/employer-enquiries?ref=numble.co.uk). They will post the codes to your registered office address. # Company Unique Tax Reference (UTR) Every company has a Unique Tax Reference When you set up your limited company, HMRC will post your Corporation Tax UTR to the company’s registered address. You may also receive a CT600 notice (a letter reminding you to file your company tax return) that includes the same code.
### **What the UTR is for** Your company UTR is a 10-digit number that identifies your business for Corporation Tax purposes.\ We’ll need this code to file your company’s tax returns with HMRC. Keep it confidential - it should only be shared with your accountant or HMRC. You may also have a separate personal UTR for Self Assessment. Make sure not to confuse the two. ### If you haven’t received it You can request a copy of your company’s UTR from HMRC [online](https://www.tax.service.gov.uk/ask-for-copy-of-your-corporation-tax-utr). HMRC will post it to the business address registered with Companies House. # VAT Registration Certificate Issued to newly VAT registered businesses You'll receive a VAT Registration Certificate in the post shortly after registering for VAT.
It's surprisingly useful, so make sure you save it. You'll also need to include your VAT number on invoices. Companies and Sole Traders can register for VAT. If you switch from one business type to another, you may need to transfer your VAT registration too. # Using Dext with Numble Everything you need to know about sharing invoices and receipts. Dext is a great system for sharing supplier invoices and receipts with Numble. Sharing receipts helps our team to categorise your transactions correctly. We expect clients to aim to upload all receipts. {% hint style="info" %} The average client uploads 85% of invoices {% endhint %} If you are VAT registered it becomes even more important to upload receipts so we can claim VAT on your expenses. HMRC require you to maintain business records for at least six years and you can be fined £3,000 if you do not keep adequate financial records. *** ## Uploading to Dext
We suggest using a computer when you login to Dext for the first time - it will give you greater oversight over how it works. Login and click "Costs" in the sidebar. Then click "+Add Documents" at the top of the screen.
You will see several ways to upload receipts. Feel free to check out each option and upload a few receipts now. Most clients prefer to upload invoices by: * Uploading files * Sending through email After testing Dext, download the app, which is great for snapping receipts on your phone. Once the receipt is in Dext - that's all you need to do! Numble will take care of the bookkeeping from here. {% hint style="danger" %} You **do not** need to categorise receipts nor should you publish invoices to Xero. Every so often we will archive your invoices to reduce clutter. {% endhint %} *** ## What to upload to Dext We want to see supplier invoices, preferably VAT receipts. We don't need you to upload: * Statements * Payment confirmations * Order confirmations * Emails Please avoid uploading these documents as they clutter the workspace and can be misleading. Dext automatically ignores duplicate uploads. #### Do you need to upload sales invoices? We only ask some clients to upload their sales invoices. Please check with us before uploading sales invoices. *** ## Invoices vs Statements {% hint style="info" %} Remember: we need invoices to know what you've purchased and how much VAT to claim {% endhint %}
Statements tell you what's overdue but they rarely provide useful information to your accountant. Statements tell us nothing about VAT, which might be misleading if we accidentally treat it as an invoice - because they do look quite similar! *** ## Invoices vs Order Confirmations
Order confirmations contain some value to us. They might tell us what you've ordered, which is great! But order confirmations rarely show VAT. Please upload confirmations only when you cannot obtain an invoice. Uploading both might be misleading, and an order confirmation that shows no VAT might lead us to think your purchase was exempt from VAT. *** ## VAT Receipts
We like to see VAT receipts that clearly show how much VAT you have been charged (which is how much you can claim back from HMRC). Some receipts do not show any VAT data. Ask your suppliers for VAT receipts and upload these to Dext. *** ## Best practice #### Upload receipts as soon as you receive them Upload invoices to Dext on your computer when purchasing online. Download the app to upload receipts on-the-go. #### Ask for VAT receipts from suppliers When purchasing on-the-go, you'll often be given the payment confirmation. It's easy to think that this is the important receipt, but often the initial receipt you receive will support your VAT claim. #### Quality over quantity Try not to overload Dext with documents that mislead us, like statements. Only upload receipts without VAT and order confirmations if you cannot obtain an invoice. Avoid uploading personal expenses too. #### Aim to upload 100% of your invoices Let's face it, you probably won't upload every single invoice. The average client uploads 85% of their invoices, so aim high! #### Delegate the work All too often business owners want to do everything themselves, but your team can upload receipts too. Feel free to ask us to create additional user accounts for your team. #### Set up an 'accounts@' email Some clients like to keep an email account just for accounting work. It's a great idea. These clients often spend time - once a week or once a month - forwarding emails from that inbox to Dext. #### Mistakes happen Try your best and it will make a big difference to our team and your tax returns! Nobody maintains perfect accounting records, but we're up for giving it a go if you are. # Connecting Bank Feeds In Xero The simple way to share your bank transaction data We ask every single client to connect their bank account to Xero. This is by far the easiest way to share your data with us. We may also need to see an actual bank statement from time to time. *** ## How to connect most bank accounts
1. Login to **Xero** and you'll find yourself on the **Dashboard** 2. Click **Add an Account** (above) and follow the instructions {% hint style="success" %} What import date should you choose? We'll usually ask you to connect your feed from a specific date, but if you're not sure then **import from as far back as possible**. It's pretty easy to delete anything we don't need. {% endhint %} *** ## How to connect additional bank accounts
1. Login to **Xero** and you'll find yourself on the **Dashboard** 2. Click **Accounting** in the header menu and then **Bank Accounts** (above) 3. Click **Add Bank Account** and follow the instructions *** ## Which accounts to connect to Xero In addition to all business bank accounts, we'll also ask you to connect most credit card, PayPal, Wise and GoCardless accounts. We will not ask you to connect personal bank accounts, unless all of the transactions in that account relate to your business. {% hint style="danger" %} Avoid mixing business and personal bank transactions in the same bank account or credit card. It's confusing, will lead to errors (including honest ones), and you'll end sharing personal transactions with your accountant. Not ideal. {% endhint %} *** ## When to send an actual bank statement We'll ask to see an actual bank statement to make sure your feed is working properly. We'll do this: * when you sign up with Numble * when you connect a feed for the first time * at the end of your accounting year We'll also ask for bank statements because feeds occasionally break down or feed duplicte transactions into Xero. # Sales Invoices In Xero Everything you need to know about billing clients in Xero

How to Access Xero Sales: Login to Xero > Business > Invoices

Most businesses raise their first invoices in Excel or Word, including Numble! But when you're ready for a professional solution, Xero is ready for you. Let's cut through the fluff to teach you about: * [Creating invoices](#creating-invoices) * [Approving invoices](#approving-invoices) * [Amending and deleting invoices](#amending-and-deleting-invoices) * [Connecting payment services](#connect-a-payment-service-to-xero) * [Designing your invoice](#designing-your-invoice) * [Marking invoices as paid](#receiving-money) * [Unallocating payments from an invoice](#remove-a-payment-from-an-invoice) * [Best Practice: How to operate a top-class sales process](/working-with-numble/using-dext-with-numble#best-practice) *** ## Creating Invoices 1. Login to Xero and navigate to Business > Invoices. 2. Start by clicking 'New Invoice'.
What to include on an invoice if you are VAT registered VAT registered businesses must meet certain requirements to issue valid invoices. Fortunately, Xero makes this easy. Here's what to include on your invoice: * To: Your Client Name (it's a good idea to enter their address too) * Reference: Optional field that will be visible towards the top of your invoice * Invoice Number: Unique sequential identifier (eg: INV-001, INV-002 etc...) * Issue Date: Today (or any other date) * Due Date: Today (or any other date) * Item: Leave blank * Description: Your product or service * Quantity and Price: eg 1 x £1,000 * Account: Sales * Tax Rate: Depends on the VAT status of your product or service, see the table at the bottom of this page Xero forces you to include all of these on your invoices, so simply add all of the relevant details and click You can edit the numbering system in Xero > Company Name (top left) > Settings > Invoice Settings > Default Settings. You must add your VAT number in Xero > Company Name (top left) > Accounting > Advanced > Financial Settings.
What to include on an invoice if you are not registered for VAT Businesses that are not registered for VAT are not legally required to raise an invoice, but of course you should. Here's what to include on your Xero invoice: * To: Your Client Name (it's a good idea to enter their address too) * Reference: Optional field that will be visible towards the top of your invoice * Invoice Number: Unique sequential identifier (eg: INV-001, INV-002 etc...) * Issue Date: Today (or any other date) * Due Date: Today (or any other date) * Item: Leave blank * Description: Your product or service * Quantity and Price: eg 1 x £1,000 * Account: Sales * Tax Rate: No VAT You can edit the numbering system later in Xero > Company Name (top left) > Settings > Invoice Settings > Default Settings.
### **VAT tax rates in Xero** | If your sale is: | Choose this tax rate in Xero: | Examples: | | ------------------------------------------- | ----------------------------- | -------------------------------------------------------------------------------------------------- | | Subject to 20% VAT | 20% VAT on Expenses | | | Zero-rated | Zero Rated Expenses | | | Exempt from VAT or outside the scope of VAT | Exempt Income | | *** ## Approving invoices​​ Xero enables multiple stage invoices, such as drafts, awaiting approval, and approved invoices. We won't go into detail about this here. Choose one of the approval options below: * **Approve** to create the invoice in your accounting records. * **Approve and email** to add your client's details and email the invoice directly from Xero. * **Approve and print PDF** to email invoices to your clients yourself. {% hint style="success" %} Approving an invoice records the revenue in your bookkeeping records. {% endhint %} *** ## Amending and deleting invoices ### Duplicate an existing invoice Navigate to an existing invoice in Xero, click Options and 'Copy to draft invoice'. {% hint style="success" %} Duplicating is an easy way to create the same invoices over and over again {% endhint %} ### Edit an existing invoice If you need to amend an invoice you can navigate to an existing invoice in Xero, click Options and Edit. ### Create a credit note To create a credit note, navigate to an existing invoice in Xero, click Options and 'Create and apply credit'. {% hint style="info" %} A credit note is the opposite of an invoice and you may issue a credit note to amend or reverse a previous invoice. You only need to raise a credit note if your client insists needs the document. It's easier to edit or delete the original invoice instead. {% endhint %} You may also need to create a credit note if your original invoice is in a 'locked period', which means your accounting data on that date is set in stone (usually by an accountant) and can no longer be amended. This happens when we prepare your annual accounts. ### Delete an invoice You can delete an invoice by navigating to the invoice in Xero, click Options and Void. This will (almost) entirely remove the invoice from your accounts Xero. It is useful for reversing an invoice that was created in error or an invoice that you no longer expect to be settled. If you are VAT registered the deletion will be reflected on the next available VAT return. If the invoice is within a locked period, then you may need to create a credit note instead. *** ## Connect a payment service to Xero {% hint style="success" %} Make it easy for clients to settle your invoices. You can do this by connecting a payment service such as PayPal, Stripe or GoCardless {% endhint %} You can also enable direct debit payments using GoCardless. This is very useful for recurring payments and subscriptions and works very well for us! To get started navigate to Xero > Company Name (top left) > Settings > Payment services. You'll find a number of default options. There are a large number of alternatives so we cannot go into detail about each one here. To find instructions for your payment service: * Check out [Xero's support guide](https://central.xero.com/s/article/About-payment-services) * Ask for help from your payment service * Ask us for support *** ## Designing your invoice You can customise your invoices in Xero > Organisation Name (top left) > Settings > Invoice Settings. You may define multiple themes if you have multiple brands or send invoices in more than one currency. But most businesses get by with one theme. Add your logo to the 'Standard' theme by clicking Options > Change Logo We also recommend the following changes in Options > Edit: * Address Padding = 0.00 * Choose a font that most closely resembles your brand and adjust the font size * Uncheck 'Show payment advice cut-away' * Enter your contact details * Enter your bank details under 'Terms and Payment Advice' *** ## Receiving money There are a few ways to mark sales invoices as paid. Let's walk through our two recommended approaches.
Reconcile cash receipts against sales invoices (Best Practice) This is our recommended approach but it requires knowledge about reconciling bank statements in Xero. We almost always connect our client's bank accounts with Xero. This feeds your bank statement directly into Xero, either instantaneously or with a one-day time lag. By reconciling your bank statement cash receipts, you won't need to manually record each cash receipt against against each invoice. 1. Navigate to the bank account in Xero > Dashboard > Reconcile x items. 2. Find the cash receipt and you might notice it has automatically been matched against the invoice! 3. Or select 'Find & Match' and search for the invoice or invoices. 4. Once you've checked the correct invoices, click 'OK' or 'Reconcile' to match the cash receipt against the invoice. This will mark the invoice as paid. Adjustments can be made if the amount received varies slightly from the invoice (for example, you've been charged bank fees). However, you should only create adjustments if you know what you are doing.
Manually record cash receipts against sales invoices Find the invoice in Xero and select 'Add Payment'. Enter the date of payment, bank account the cash was received into, and the amount paid. A reference is optional and probably not necessary. This will mark the invoice as paid in Xero. At a later date, when we reconcile the bank account, the cash receipt must match up with money you have actually received (i.e. you shouldn't mark as invoice as paid when you haven't received the money). This process is manual and we tend to prefer the next option, which involves reconciling your bank statement data. However, we find some clients are not comfortable reconciling bank statement data themselves and prefer this slightly slower but easier-to-implement approach. It's up to you!
*** ## Remove a payment from an invoice You can remove the payment from Xero in one of two ways. * Navigate to the invoice > click on the 'Less payment' link on the bottom right of the invoice > Options > Remove & Redo * Navigate to the payment in the bank account > Options > Remove & Redo If you created the payment manually, then it will delete the transaction from Xero. If you created the payment from a bank statement data, then it will unallocate (but not delete) the cash receipt so it can be reconciled against something else. *** ## Best Practice {% hint style="success" %} These tips are based on decades of experience. {% endhint %} #### Send invoices from Xero without delay Send invoices as soon as you provide goods/services (or possibly even earlier). Don't be afraid to ask your clients for money. They expect to be invoiced so don't dither. Keep your design on-brand and simple. Make it easy for customers to find what they need, like your VAT number or your bank details. Never offer payment terms to clients unless they have specifically negotiated terms beforehand. The average sales invoice is paid two weeks late. If you give someone two weeks to pay then you're essentially asking to be paid a full month after you raise your invoice. This may seriously affect your cash flow. Remember: you are not in the business of lending money to your customers. #### Make it easy for clients to pay Set up a payment processor. It might take a bit of technical know-how but GoCardless works great for us. Direct debits are also cheaper than card-based payment services. Be mindful of payment fees. PayPal and most card merchants charge a fee of up to 2.5% of the total payment. This might seem like a small amount but let's look at an example. If your business model generates 10% profit margin then a 2.5% payment fee represents one quarter of your profit! Always include bank details on your invoice, even if you expect to be paid by other means. This is a useful fallback for when everything else fails. #### Reconcile cash receipts against invoices every day Make sales invoicing a daily habit. Prepare and send sales invoices immediately. This matters. Reconcile cash receipts every day. Without money coming in, you don't have a business. #### Don’t be afraid to chase The advantage of reconciling receipts every day is that you can set up automated reminders to chase overdue invoices. This saves you time and reduces the inconvenience of 'hassling' clients for payment. Let the robots to the work. # Introduction to Apron At Numble, we use [Apron](https://getapron.com/) to make managing your invoices and receipts fast, secure and easy. Apron helps capture all your paperwork in one place, so we can keep your bookkeeping up to date and your accounts accurate.
Apron sits in front of Xero in our tech stack. Xero is your primary accounting system and excels at handling your financial records, but we choose to manage invoice documents in Apron because it offers more features and stronger AI for document capture and processing. You might see other features in Apron when you log in. Here’s a quick guide to what each section means - and which parts are included in your Numble package.

Apron Sidebar

### What’s Included in Your Numble Apron Package We currently include **Apron Invoice Capture** as standard for all our clients. This sits under the **Bookkeeping** section of Apron. * **Bookkeeping → Purchases**\ This is where you upload your invoices and receipts. Apron reads the documents and extracts important details like supplier names, dates, amounts and VAT. We review this information and publish it into your accounting system. * **Bookkeeping → Sales**\ Here you can upload your customer sales invoices if you don't already create them in Xero. Apron captures key details (customer name, invoice number, dates, amounts) and stores them ready for posting into your accounts. If you issue invoices to customers, this helps us keep your sales records tidy and accurate. Uploading your documents regularly keeps your books accurate and avoids missing any tax-deductible expenses or customer income. Above that, you’ll see your company name - for example in the screenshot above, **Numble Demo Company (UK)**. If you ever have more than one business on Apron, you can switch between them here. **Contacts** stores details of your suppliers and customers. Apron will start building up this list automatically as it reads your invoices and receipts. Lastly, there’s **Settings**, where you can manage your login details, update your business information, or connect Apron to other systems. Most clients don’t need to adjust these settings often, but we’re happy to help if you’d like to integrate Apron more closely with other tools. ### Other Apron Features Not Included **Bill pay** is where you can pay your suppliers directly from Apron, track upcoming payments, and manage cash flow. This feature isn’t included in your standard Numble package, but it’s available as an upgrade if you’d like help managing supplier payments through Apron. **Expenses** is designed for managing staff expense claims, like mileage, subsistence or other costs employees pay personally and need reimbursing. This isn’t part of the standard Numble package, but can be added if your team needs it. **Unreconciled transactions** helps match bank transactions to your invoices and bills inside Apron. As it stands we prefer to use Xero to reconcile transactions so we don't use this feature. # Getting Started With Apron Everything you need to know about getting set up, how to upload your documents, and what to send through. We ask you to: * activate your Apron account * upload invoices to Apron * that's all! In most cases we will take care of categorising, editing and publishing invoices from Apron to Xero, unless you have agreed a custom set of workflows with Numble. ## Activate your Apron account * We’ll send you an invitation to join Apron. * Click the link in the email and follow the steps to create your password and log in. * Once you’re logged in, you’ll arrive on your Apron dashboard. ## Upload invoices and receipts There are a few ways to get your documents into Apron: ### A) Upload directly via Apron * Log in to Apron. * Go to **Inbox → Purchases → Upload Documents**. * Drag and drop your files into the upload window or click **Browse files** to select them from your computer. * Apron will show your uploaded documents under the **Inbox** tab, where they’ll be processed. ### B) Forward documents via email Each Apron account has a unique email address for sending documents. Simply forward your invoices to that email address and they will appear in Apron. * Find your unique Apron email by going to **Inbox → Purchases → Upload Documents**
* Forward any invoices or receipts you receive by email directly to this address. * The documents will appear in your Apron **Inbox** ready for processing. This is ideal for invoices suppliers email to you automatically. ### C. Upload via the Apron mobile app * Download the **Apron** app from the App Store or Google Play. * Log in with your Apron account details. * Tap the **+** button in the corner, then select **Capture recipts**. * Take a photo of a paper receipt or choose a file from your phone. * Upload your document. This is ideal for travel expenses or anything you need to capture on the go. ### D. Upload via WhatsApp You can also upload from WhatsApp! * Add the phone number you have registered with your WhatsApp account to your user profile in Apron. Login to **Apron** and navigate to **Settings → Members.** Choose **Edit Details** next to your username. Add the phone number that is connected to the WhatsApp account you want to use. * Open a conversation with the Apron WhatsApp business account by following this [link](https://wa.me/447874467157) or searching for their phone number (+447874467157). * You can now send documents to this channel, and they will appear in your **Apron Inbox**. Unfortunately this won't work if you have access to multiple companies in Apron. But it is a great option if you only have one company and find it easier to forward photos or screenshots from your phone without logging into Apron. ## What to Upload to Apron Please upload **documents related to your business income and expenses** so we can record them accurately in your accounts. ### Upload to **Bookkeeping → Purchases** We’re mainly looking for **supplier invoices** — ideally VAT invoices. If a VAT invoice isn’t available, a standard invoice or order confirmation is fine too. #### What *not* to upload To keep your Apron workspace clear and accurate, please **avoid uploading** the following unless necessary: * Supplier **statements** * **Payment confirmations** * **Emails** Uploading these can clutter your document feed and sometimes create confusion - especially if there's no matching invoice. Apron may flag or reject these automatically, but it’s best to avoid uploading them altogether. That said, there is one exception:\ If you don’t have a formal invoice but still want to document the expense (for example, an email that confirms a one-off card payment), feel free to upload it - just know it may not be processed in the usual way. ### **Upload to Inbox → Sales** We might also ask you to upload invoices that you send to your clients, but you do not need to upload invoices created in Xero. If we do, you'll find the option to upload sales next to purchases.
## How to handle personally paid expenses in Apron If you pay for a business expense using your personal funds (e.g. your own bank card or cash), you can still use Apron to record it properly. #### Upload and edit the invoice you paid personally 1. **Upload the receipt or invoice to Apron** as usual – via email, app, desktop or WhatsApp. 2. Once it appears in your Apron **Inbox**, open the document. 3. In the **Contact** field, change the supplier name to your own name. * For example: *"Elon Gates (Reimbursement)"* * This tells Xero the payment was made personally. 4. Check the details (amount, date, VAT etc.) are correct. 5. Click **Publish** to send the bill to Xero. #### Pay yourself Set up a bank transfer from the company account to your personal account. One payment per invoice is the easiest to track. #### What happens next in Xero * The expense will appear in Xero as a bill payable to you. * From there, we can **Reconcile** the payment against the bill when it shows up on your bank feed. This keeps everything tidy: the business gets the tax deduction, and you get reimbursed properly with a clear audit trail. #### Optional: use one contact for reimbursements If you're regularly reimbursing the same person (e.g. a director or an employee), it's helpful to create and re-use a single contact in Xero for all their personal expenses. For example: *“Elon Gates (Reimbursement)”*. This helps keep things consistent and easy to track. # Processing Personal and Employee Expenses in Apron Here’s how to handle expenses that have been paid personally and need to be reimbursed. ## Expenses paid personally by the business owner If you (as the director or owner) pay for something business-related using your personal card or cash, you can still reclaim it and ensure it’s correctly recorded. **What to do:** 1. **Upload the receipt/invoice to Apron** using any method (email, app, WhatsApp, etc.). 2. In **Apron → Bookkeeping → Purchases**, open the document and **change the supplier name to your own** (e.g. "*Bill Palmer (Expenses)*"). 3. Click **Publish** to send the expense to Xero. 4. In Xero, it will appear as a **bill payable to you**, ready for reimbursement. 5. Pay yourself (from the business bank account to your personal bank account). 6. At a later date, the payment will show up in your Xero bank feed: 1. If we reconcile Xero for you, we'll handle this step. 2. If you reconcile Xero yourself, you should allocate each payment against the related bill. {% hint style="info" %} If possible, make one payment per bill, to help us when matching the payment to the bill. {% endhint %} This ensures the business gets the tax relief, and you get properly reimbursed. ## Expenses paid by employees If an employee pays for something on behalf of the business, the process is nearly identical. **What to do:** 1. Ask the employee to **upload the receipt/invoice to Apron** - or do it on their behalf. 2. In **Bookkeeping → Purchases**, change the supplier name to the employee’s name (e.g. "*Patty McKee (Expenses)*"). 3. Click **Publish** to send it to Xero as a bill payable to the employee. 4. Once paid, reconcile the payment against the bill in Xero. {% hint style="info" %} If possible, make one payment per bill, to help us when matching the payment to the bill. {% endhint %} ## Setting up employee expense cards Apron offers **free expense cards** for small businesses. These cards work like **prepaid debit cards**, and are a simple way to let team members pay for business expenses without needing reimbursements. You can read more about how they work on [Apron's website](https://getapron.com/expenses), but if you’d like to try them out, it’s quick to get started. ### 1. Log in to the Apron mobile app Download the **Apron app** from the App Store or Google Play and log in with your usual account details. ### 2. Start the expense card setup On the home screen, look for an option to **Set up Expense Cards**. Tap this to begin the process. ### 3. Complete the verification steps To activate the cards, Apron will ask for a few business and identity details. This may include: * Your company’s registered name and address * Proof of ownership or control (e.g. a Companies House check) * A photo of your ID (like a passport or driving licence) {% hint style="info" %} We can help you set up additional members on your Apron account - just ask! Access can be restricted to just their own expenses so they don't see everything on the account. {% endhint %} ### 4. Order and assign cards Once approved, you can issue **virtual cards** (physical cards are coming soon). For each card, you’ll: * Choose a cardholder (yourself or a staff member) * Set a monthly spending limit * Add any category restrictions (e.g. fuel, food, tools) Virtual cards will be available immediately. ### 5. Use the card for business purchases The cardholder can now use their Apron card for business-related spending. After each purchase, they’ll get a prompt in the Apron app to upload a receipt. ### 6. Review and publish in Apron Each transaction appears in **Bookkeeping → Purchases** with the cardholder’s name attached.\ You (or your accountant) can: * Check the details and receipt * Categorise the expense * Publish it to Xero like any other invoice or bill This keeps things simple and avoids the need for manual reimbursements. # First Self Assessment Tax Return Introduction to UK Self Assessment Common reasons to submit a self assessment tax return: * you have untaxed earnings outside of payroll like dividends, rental income, crypto income or capital gains * you are self employed (but you do not have a limited company) * you earn more than £100,000 as an employee {% hint style="warning" %} It's down to you to register for self assessment. You can't rely on HMRC, your accountant, or the bloke down the pub to tell you to do so. You may be fined if you fail to register on time. {% endhint %} *** ## When to register for self assessment The UK tax year runs from 6th April to 5th April. You can only register for self assessment after the end of the tax year and before 5th October. {% hint style="info" %} Example: Let's say you generate £4,000 selling pizza in October 2023. You must register for self assessment between 6th April 2023 and 5th October 2024. {% endhint %} Before preparing your first tax return you need to register for self assessment. You'll receive a Unique Tax Reference after registration. {% hint style="warning" %} It takes 10-30 days to receive your UTR in the post, so don't register too late. {% endhint %} If you are late - then register as soon as possible. You may still be fined, but you may also be able to appeal the penalty. HMRC tend to be lenient if you show a willingness to put things right. *** ## How to register if you are a company director or earn more than £100k {% hint style="danger" %} Skip to the next section if you are self employed {% endhint %} Company directors only need to register for self assessment if they also have untaxed earnings, such as dividends. You can also follow these steps if you earn more than £100k as an employee. Follow the link below to register for self assessment: {% embed url="" %} During registration you will: * Set up an individual government gateway account * Pass security and ID checks What happens after registration: * You'll receive a UTR in the post in 2-4 weeks * Forward your UTR to us and we'll let you know what's next Then check out our checklist for the complete list of what we need from you to prepare your tax return. *** ## How to register for self assessment if you are self employed {% hint style="danger" %} See the above section if you are a company director or earn over £100k per year {% endhint %} If you run a business but you do not have a limited company then you are self-employed. Sole trader is another term for the same situation. You only need to register for self assessment if you generate more than £1,000 in revenue. To register, follow the steps under "If you have not filed a tax return before". {% embed url="" %} During registration you will: * Create or login to a business tax account * Pass security and ID checks Once you have access to your business tax account, you'll need to select 'add Self Assessment' from the dashboard. What happens next: * You'll receive a UTR in the post in 2-4 weeks * Forward your UTR to us and we'll let you know what's next Then check out our checklist for the complete list of what we need from you to prepare your tax return. # Self Assessment Tax Return: Earnings Checklist What we need to file your personal tax return To prepare your self assessment tax return we need your: * Personal Unique Tax Reference (UTR) * Previous tax return {% hint style="warning" %} Completing a tax return for the first time? You should [register for self assessment](/self-assessment-tax-returns/first-self-assessment-tax-return) before coming back to this checklist. {% endhint %} In each tax return we'll need to report all of your income from the tax year. This includes things like payroll that may have already been taxed. We'll look at your total earnings, calculate your total taxes, and deduct any tax you've already paid. {% hint style="danger" %} HMRC receive much of this information from various sources so it's important to include everything, or we may get a surprise after filing your tax return. HMRC will amend your tax return and liability if they think you have additional income. {% endhint %} Let's we'll look at the most common sources of income and what we need from you to prepare your tax return: * [Savings Interest](#savings-interest) * [Rental Income](#rental-income) * [Student or Postgraduate Loans](#student-or-postgraduate-loans) * [Cryptocurrencies](#cryptocurrencies) * [Dividends](#dividends) * [Employment Earnings](#employment-earnings) * [Other Self Employed Income](#other-self-employed-income) * [Trust Income and Dividends](#trust-income-and-dividends) * [Foreign Income](#foreign-income) * [Gains on the Sale of Assets](#gains-on-the-sale-of-assets) * [High Income Child Benefit Charge](#high-income-child-benefit-charge) Click the links above or scroll down to see what we need. *** ## Savings Interest {% hint style="info" %} What we need: savings interest in excess of £500 broken down by total from each source. {% endhint %} Basic rate taxpayers do not pay tax on the first £1,000 of savings income. Higher rate taxpayers do not pay tax on the first £500 of savings income. Some interest is tax-free, including: * Interest received from an ISA * Income from some National Savings Certificates *** ## Rental Income {% hint style="info" %} What we need: breakdown of property income and expenses. {% endhint %} UK residents are taxed on UK and overseas property income, though there is a tax-free allowance of £1,000 per year. You must keep track of rental income and expenses, for example by keeping bank statements, receipts and invoices. Allowable expenses include costs wholly and exclusively incurred when renting out property. Finance costs including mortgage interest are subject to restrictions. *** ## Student or Postgraduate Loans {% hint style="info" %} What we need: your student or postgraduate loan repayment plan type. {% endhint %} It's not a type of income, but we do need to report this on your tax return. You must report and make student and postgraduate loan repayments on your tax return. How much you pay depends on your plan: * Plan 1, Plan 2, Plan 4 - 9% of your earnings over the threshold * Postgraduate Loan - 6% of your earnings over the threshold The thresholds vary with each tax year. {% hint style="danger" %} Omission of student loan plans are the most common errors leading to automatic adjustments by HMRC. HMRC have a complete record of Student Loans so get it right first time or you will receive a surprise tax bill. {% endhint %} *** ## Cryptocurrencies {% hint style="info" %} What we need: to know the nature of your crypto transactions so we can determine whether you might have taxable gains or profits. {% endhint %} #### When you pay capital gains tax You’ll pay capital gains tax on gains from: * selling crypto * trading crypto for other crypto * spending crypto on goods and services * gifting crypto to anyone other than your spouse or civil partner #### Capital gains tax-free allowance The capital gains tax-free allowance is £3,000 for 2024/25. So you will only pay capital gains tax on gains in excess of £3,000. #### Reporting crypto losses You can offset reported capital losses against your capital gain to increase the gain you can make without paying CGT. If you expect to make gains in excess of the CGT allowance then you need to consider reporting any capital losses in the years leading up to it. While you can carry forward capital loses indefinitely, there is a four year time limit to register them. #### When you pay income tax In certain limited cases you’ll pay income tax on cryptocurrency profits such as: * Earning crypto in exchange for work * Staking rewards, mining and airdrops *** ## Dividends {% hint style="info" %} What we need: the value and timing of all dividends. {% endhint %} Dividends are usually taxable on the date they are received by the shareholder (ie the payment date). This is because dividends are taxable at the point "the distribution is otherwise unreservedly placed at the shareholder’s disposal" [according to HMRC's internal manual](https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm15205). HMRC go on to clarify that "a final dividend which does not specify a date for payment creates an immediately enforceable debt", so it's important that the payment date is correctly stated in company documentation. For example, let’s say on 15 April a company declares a dividend for the period ending 31 March, and the dividend is paid on 10 May. The dividend is taxable on 10 May, but only if the dividend voucher and board minutes specify the payment date. *** ## Employment Earnings {% hint style="info" %} What we need: P60s from all of your employments, and P11Ds for any non-cash benefits such as medical benefits, company cars or other taxable perks. {% endhint %} You must report all income on your tax return, including earnings that have already been taxed through payroll. If you need to file a Self Assessment for any reason, we will require the P60s and P11Ds listed above. HMRC have relaxed the old rule that required a tax return automatically once employment income exceeded a set level. If your earnings are high or you are unsure whether you need to file, please ask. *** ## Other Self Employed Income {% hint style="info" %} What we need: details of other income received outside of PAYE. {% endhint %} Other income may be taxable as earnings. There is a tax-free trading allowance of £1,000 that may reduce the tax you pay. *** ## Trust Income and Dividends {% hint style="info" %} What we need: details of any trust income and dividends. {% endhint %} You may pay tax on income and dividends from trusts. There are various types of trust and each type is taxed differently. *** ## Foreign Income {% hint style="info" %} What we need: details of worldwide income. {% endhint %} UK residents normally pay tax on worldwide income. This may include wages, dividends/interest, property income and pensions originating outside of the UK. There are complex rules around tax residency and domicile that will determine what you must report and how you pay tax. *** ## Gains on the Sale of Assets {% hint style="info" %} What we need: details of any gains such as art, property, shares, currency and more. {% endhint %} Gains in excess of £3,000 (tax-free allowance) must be reported. You must also report any gains where the sales proceeds (total amount you sold for) exceed £50,000, even if your gain is below the annual exempt amount. UK residential property disposals must be [reported to HMRC](https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start/report-pay-capital-gains-tax-uk-property) within specific timeframes. Disposals from 27 October 2021 must be reported within 60 days. Other capital gains may be reported on: * the [HMRC ‘real time’ CGT service](https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-have-other-capital-gains-to-report) * your annual self assessment tax return *** ## High Income Child Benefit Charge (HICBC) {% hint style="info" %} What we need: to know if you or your partner have claimed Child Benefit. {% endhint %} If you or your partner received Child Benefit during the tax year, please let us know. HICBC applies when either partner has adjusted net income over £60,000. It increases gradually and reaches a full repayment of the Child Benefit at £80,000. You can also [opt out of Child Benefit](https://www.gov.uk/child-benefit-tax-charge/stop-child-benefit). If you have income greater than £60,000 then we need to know if you or your partner have claimed Child Benefit and: * the total amount received in the year * how many children you have * the date (if any) you stopped receiving Child Benefit payments *** ## How to share your earnings data with Numble It depends on the type of earnings. Most data can be emailed to us, but if you're not sure feel free to ask. # How to Pay Your Self Assessment Tax Return A guide to payment methods and setting up a payment plan Self Assessment tax is normally due on **31 Jan** each year with additional payments on account due on **31 Jul**. If you want to pay your bill in full, HMRC lists all available payment methods here: {% embed url="" %} If you cannot pay in full, you may be able to set up a payment plan with HMRC. This guide explains the current options. *** ### Setup an Online Payment Plan HMRC offers *Time to Pay* arrangements that allow you to spread your tax bill over monthly instalments. Many taxpayers can set these up online without speaking to HMRC. #### Eligibility for an Online Payment Plan You can normally set up a plan online if: * You owe **£30,000 or less** * Your tax return for the year is **already filed** * You have **no other active payment plans with HMRC** * You set up the plan **within 60 days of the payment deadline** If all conditions are met, HMRC typically auto-approves the arrangement. #### How to Set Up a Plan Online 1. Log into your **HMRC personal tax account** 2. Go to **Self Assessment** 3. Select **Set up a payment plan** 4. HMRC will show the maximum number of months available 5. Choose your monthly amount and payment date 6. Enter your Direct Debit details and confirm Approval is immediate, and no phone call is required. *** ### Contact HMRC for a Custom Payment Plan If you owe more than £30,000 or need a longer repayment period, you will need to speak with HMRC to request a managed arrangement. Head here for contact details: {% embed url="" %} **How it Works** 1. Call HMRC and explain that you want to set up a Self Assessment **Time to Pay** arrangement. 2. HMRC will ask for a short breakdown of your financial position so they can assess affordability. 3. They will then suggest or agree a monthly repayment amount and confirm the plan. **Information HMRC Usually Asks For** * Your income * Your essential monthly outgoings * Savings or cash balances * Other debts or liabilities * A realistic monthly amount you can afford **What to Expect** * HMRC may approve the plan immediately if the proposal is reasonable. * They may ask for evidence if the amount owed is large or the case is unusual. * Interest continues to accrue until the balance is paid. *** ### What Happens After a Plan Is Set * **Interest continues to accrue daily** until the balance is paid * HMRC will not take enforcement action as long as payments are maintained * Future Self Assessment bills are **not added automatically**, so you must pay future liabilities separately or arrange a new plan when due *** ### If You Miss the Deadline Without a Plan If you neither pay in full nor set up a payment plan: * Interest starts immediately after the due date * Late payment penalties may apply * HMRC may send payment demands or escalate the debt If you think you will struggle to pay, it is far better to set up a plan before the deadline. # New Company x New Director Tips and tricks for new directors You've just started a new company but you're not sure what you're meant to do. We're here for you with this simple guide. We'll answer the most common questions including: * [How do I withdraw money from my business?](#how-to-withdraw-money-from-your-business) * [How much money do I need to put aside for taxes?](#keeping-money-aside-for-taxes) * [How can I contribute to my pension?](#contributing-to-your-pension-as-a-director) * [Which bank account should I use?](#uk-and-foreign-bank-accounts) * [Do I need to keep every receipt?](#keeping-receipts) * [What working-from-home expenses can I claim?](#working-from-home-expenses) *** ## How to withdraw money from your business ### Determine your optimum salary and dividend structure Most directors declare a small salary through payroll and withdraw the remainder of their funds as dividends. While every director's situation is different, we usually recommend declaring income in this order:
PriorityWithdrawal Type (2025/26)Typical Tax Rate
1Salary up to £12,570 per year or £1047.50 per monthTax-deductible expense for the businesss, but no longer tax-free for the you as an individual. You'll pay employer's PAYE of £1,135.50 unless you are able to claim the Employment Allowance.
2Dividends up to the £500Tax-free, but dividends can only be declared out of sufficient profits. Dividends are declared after you have paid corporation tax on profits.
3Repay directors loansAny money you've invested in the business can be taken out tax-free, but you should take advantage of your tax-free personal allowances first.
4Dividends above this levelMost people will pay tax on dividends starting at 8.75%. You'll have to pay for the tax personally, so try to factor the tax into the dividend itself.
5More dividendsIt's a good idea to ask your accountant to calculate the optimal strategy for you if you're earning more than £50,000 per year.
This usually holds true if the business is your only source of income. It's a bit more complicated if you have other earnings, or if you've just started the business and you have earnings from a previous employer in the current the tax year. {% hint style="success" %} We calculate the optimum earnings structure for every client based on their individual circumstances. {% endhint %} ### How to withdraw dividends People often create confusing and arbitrary guidelines around dividends so let's cut through the clutter. #### Shareholders Not Directors Dividends are paid to shareholders not directors. Most business owners are a shareholder and a director of their company. #### Frequency Dividends can be paid out as often as you like, whether that's annually, quarterly or monthly. You could theoretically pay them every day but the best approach is once a month, with occasional top-ups when you need more money. #### Payments Dividends are payments from a company to the shareholders. You don't need to do anything special when making the payment - a normal bank transfer will suffice. #### Available Profits Dividends can only be declared from profits. If you know you have sufficient profits then feel free to withdraw dividends - it's your company at the end of the day. Just remember to keep money in the company for corporation tax. {% hint style="info" %} Example: Your company makes pre-tax profit of £10,000, on which you estimate corporation tax of £2,000. Post tax profit of £8,000 is available as dividends. {% endhint %} {% hint style="warning" %} The above example is highly simplified, and the actual calculation will need to factor in previous years profits less any dividends that have been declared in the past, amongst other things. {% endhint %} If your business is new and is not yet profitable, then much depends on whether you've lent money to the business to get started. Here are a couple of options: * You might declare a small salary. Any additional funds you withdraw from the business can be repaid from the money you lent the business to get started. * You might declaring a salary to cover everything you earn from your business if you've withdrawn all of your initial loan or never lent the company money in the first place. #### Corporation Tax Dividends are declared from profit after tax. Profitable companies should put aside 19-26% to cover corporation tax before paying dividends to shareholders. #### Timing Dividends can be withdrawn in your first year of trading before you've submitted accounts. If you know your company is profitable, then you can withdraw dividends, you don't have to wait until after your company year-end. #### Documentation You don't need to create any formal documentation or board resolutions before you withdraw money if you own your own small business. Practically speaking, we'll still need to draw up the documentation, but we can do that shortly after you have withdrawn the funds. ### How to declare a small salary Let's look at three potential salaries using thresholds from the 2023/34 tax year: * Small salary of £9,100 per year or £758 per month - completely free of tax and national insurance * Small salary of £12,570 per year £1,047.50 per month - no tax or employee national insurance, but creates a small employer national insurance liability * Large salary covering all of your takings - generally the least tax-efficient approach To declare your chosen salary you'll need to: * Register with [HMRC as an employer](https://www.gov.uk/register-employer) * Download or subscribe to payroll software You'll need to remember to send monthly payroll Real Time Information (RTI) submissions to HMRC: * FPS - must be sent for each payroll, on or before the pay date * EPS - optional in any month, you'll send an EPS to claim the Employment Allowance if you're eligible or to claim other statutory repayments (such as Statutory Maternity Pay). How to send these reports varies depending on the system you decide to use. Late FPS submissions will incur penalties starting from £100 per late return. {% hint style="success" %} As your accountant - we'll handle all of this! {% endhint %} *** ## Contributing to your pension as a director For someone that owns their own business - we usually suggest that the company makes 'employer contributions' into your pension scheme. It is often better than alternatives like extracting dividends and paying a personal contribution into a pension scheme. It is also superior to 'ordinary' auto enrolment, which is why we usually recommend that directors not take part in their employee auto enrolment pension scheme. Furthermore, you can make near-unlimited employer contributions into your personal pension scheme, as long as they are reasonable for your position in the business. They count towards the annual allowance of £60,000 and most startup and small business owners will contribute less than this amount. Employer contributions are tax deductible for the business too (ie they reduce corporation tax). You just need to make the actual payment before the end of your company's accounting period. Employees do not need to be in the same workplace pension as directors - the only requirement is that you meet the statutory minimum for worker pensions. You can have any number of groups of workers with varying contribution methodologies. {% hint style="success" %} Example: £10,000 per year is a perfectly legitimate employer contribution for most directors. Corporation tax will be reduced by £1,900 to £2,600 based on current rates. {% endhint %} *** ## Keeping money aside for taxes Managing cashflow is one of the great challenges for small business owners. It's not unusual to be blindsided by an unexpected tax liability. On the flipside, most taxes are paid well after the period they relate to, so you'll often find yourself holding onto cash that you should put aside to pay HMRC. Over time we've come up with a series of tips to help you keep the right amount of money aside, so let's walk though the three main business taxes and personal tax. #### VAT If you're VAT registered then you'll charge be charging VAT to your customers. Keep this portion of your sales receipts aside as you receive money from your customers. This is easy to do if you only have a handful of fees each month. But if you have a lot of transactions - like a coffee shop - then we'd suggest finding the VAT report on your sales system and putting this money aside weekly. You'll also pay VAT which you can claim back on your VAT return. You can either treat this money as a bonus cash payment each quarter, or you can adjust the percentage of sales receipts that you put aside based on previous tax returns. #### PAYE and NI Lots of new employers find this difficult. When we run payroll, we'll tell you how much to pay each member of staff and how much to pay HMRC. The amount of tax you pay will vary depending on each employee's circumstances. You'll pay your employees on payday, and you'll pay HMRC the following month by the 22nd. Some small companies qualify for quarterly payments, but we still recommend paying HMRC monthly. {% hint style="info" %} Example: You offer someone a gross salary of £2,000 per month. In ordinary circumstances, you'll pay about: * £1,700 to your employee (after tax) * £300 to HMRC for employee taxes * £200 to HMRC for employer taxes So the overall cost to you is £2,000 plus £200 in employer taxes. {% endhint %} #### Corporation Tax Corporation tax is charged at 19% on the first £50,000 of profits. It is paid nine months and one day after your company year-end. {% hint style="info" %} Example: Your company year-end is 31st December and you made taxable profits of £20,000. You'll need to pay corporation tax of £3,800 by 1st November. {% endhint %} You should have a rough idea of your profits by asking us or by maintaining your own profit and loss reports. Keep one-fifth aside and you'll have enough to pay HMRC when the time comes. You can also ask us to prepare your accounts as soon as possible after year-end. In the example above, if we were to prepare your accounts in January, then you'd have eight months to prepare for the tax liability. We should highlight that accounting profit, taxable profit and cash profit are not the same thing. But for most businesses they are very similar. You may need to adjust the tax estimate slightly for your specific business. #### Personal Income Tax You'll pay personal income tax either through payroll or a self assessment tax return. If you pay yourself only through payroll, then you'll pay all of your taxes through PAYE, and you won't need to keep anything aside. If you also declare dividends, or have any other income, then you'll need to keep money aside to cover your personal tax liability. There are countless variations, so we can't walk you through everything, but we'll highlight one area in particular. If you draw dividends from your company, then you'll pay tax your self assessment tax return. We've drawn up a [personal withdrawals table](#determine-your-optimum-salary-and-dividend-structure) above that will give you an idea of the amount of tax you'll pay. *** ## UK and foreign bank accounts You have lots of options, but here at Numble we use: * Starling Bank as our main bank account * American Express credit cards to collect reward points on business spending * Pleo for employee expenses * GoCardless to collect direct debits I usually advise new business owners to set up a bank account with the challenger banks, like Starling, Tide or Revolut. Challenger bank apps tend to be faster and easier to use, while their bank feeds are faster and break less often. If you have more than £50,000 in cash, then you should consider holding cash in multiple bank accounts to reduce your exposure to any individual bank. For spending and receiving funds in other currencies, we always recommend Wise. It's not a bank account, so you should not keep large balances in a Wise account, but they offer healthy exchange rates and extremely fast currency conversions. *** ## Keeping receipts It's a legal requirement to keep evidence to support your business transactions. Storing invoices and receipts is a vital requirement for every business owner. You can store invoices and receipts digitally - we use Dext but you can use Dropbox or Drive if you're looking for a free alternative. You do not need to keep hard copies if you have stored invoices safely online. In practice, you'll lose some receipts. That's a perfectly normal occurrence. Just try to keep the vast majority of invoices and receipts and you'll do just fine. However, it's really important that you make an effort to store VAT invoices if you want to claim this back from HMRC. HMRC often disallow claims if they investigate your VAT return and you don't have a valid VAT invoice or receipt. *** ## Working from home expenses Most of the time, if you do any work from home, then you can claim a flat rate working from home allowance. We'll capture these when we prepare your annual accounts. This is our recommended approach. Alternatively, you might be able to claim specific costs based on rent (or mortgage interest) and other bills. This often yields a larger expense claim, but can be a little hard to prove. Let us know if you'd like to run this calculation. # How To Incorporate A Company Our super simple guide to setting up a new company It’s easier than you think to create a company. Avoid incorporation fees from accountants, lawyers or formation agents - and do it yourself using the Companies House step by step form. Just head here to get started: {% embed url="" %} Let's explain some of the terminology you'll encounter when completing the form. *** ## Company Roles The owner of the business is a **shareholder**. The shareholders appoint **directors** who manage the business’s day to day activities. The same individuals are usually shareholders and directors in most startups and small businesses. It is no longer a requirement to appoint a **company secretary** so this can usually be ignored. *** ## Registered Office Address Every company must have a registered office address. Companies House and HMRC will send important post to this address. It will also be [publicly available at Companies House](https://find-and-update.company-information.service.gov.uk/search/companies). Despite this, business owners often use their home address. This is fine for most new businesses. But if this is a problem for you then you can ‘rent’ a virtual office to handle and forward mail to you. If this interests you then check out [The London Office](https://thelondonoffice.com/pricing). We can't vouch for their service as we don't subscribe to their services. But some of our clients have taken advantage of their registered office address service and note their low price and ease of use. *** ## Standard Industrial Classification of Economic Activities (SIC Codes) You will need to choose a SIC code to provide Companies House with a description of your business. You can [search SIC codes](https://www.gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic) here if you need to. You can change this at a later date so don’t dwell on it. Pick the closest code and you can ask us later to review it. *** ## Share Capital A new business with one owner might start with 1 x £1.00 of ordinary shares. If you have more than one owner, then you might opt for 100 x £0.01 ordinary shares. The 100 shares can then be apportioned however you like (for example - 50/50 for two equal shareholders). You’ll have to pay the total value of the share capital into your company bank account when you get started. The funds will effectively be locked in the company until you sell the shares in the distant future. So don’t set up an initial share capital higher than £100 unless you really have to. Keep it low and simple. #### Example Share Structures | Scenario | Number of Shares | Value of Each Share | Total Share Capital | | ------------------------ | ---------------- | ------------------- | ------------------- | | Sole Shareholder | 1 | £1.00 | £1.00 | | Two Equal Shareholders | 50 each | £0.01 | £1.00 | | Three Equal Shareholders | 3 each | £1 | £3.00 | *** ## Next Steps After you have completed the online form, you should receive an email from Companies House confirming your new company has been created within 24 hours. It's a good idea to set up a bank account as soon as you can. Challenger banks like Starling Bank and Monzo are popular options. We use Starling Bank and it works very well for us. And if you need an accountant - you know where to find us! Get an instant online quote: {% embed url="" fullWidth="false" %} # Companies House ID Verification How to verify your identity with Companies House ### Who needs to verify All directors and persons with significant control (PSCs) must verify their identity with Companies House. This applies to both existing and new appointments. ### Why it matters You’ll need to complete verification to continue acting as a director or PSC. If you don’t verify, Companies House may block filings or remove you from the register. ### How to verify (directly via GOV.UK) 1. **Go to the GOV.UK verification page** [**here**](https://www.gov.uk/guidance/verify-your-identity-for-companies-house) 2. **Create or sign in with your GOV.UK One Login**\ You’ll need an email address, password, and two-factor authentication. 3. **Provide your photo ID**\ Accepted documents include a valid passport, driving licence, or UK biometric residence permit. 4. **Complete the facial or security check**\ You’ll either upload a selfie or answer security questions. 5. **Get your personal verification code**\ Keep this safe - it’s unique to you and will be required for each company where you’re a director or PSC. You’ll use it whenever Companies House asks for verification. 6. **Send your code to Numble**\ We’ll add it to your company’s records at Companies House and make sure everything stays up to date. #### Good to know * The process usually takes just a few minutes to complete online. * Verification is free if you complete it yourself through GOV.UK. * You only need to verify once, then use your personal code for all future roles. * Overseas directors and PSCs can also verify through the same online service. #### How to find your personal code If you’ve already verified your identity but didn’t save your code: * Sign in to your Companies House account [here](https://find-and-update.company-information.service.gov.uk/) using the same email address you used during verification. * Go to “Manage account” - your 11-character personal code will be shown there. * If you're having trouble with the above link then try to access the alternative login page [here](https://home.account.gov.uk/).
# Raising Finance For Your Company There are three broad ways that businesses raise money. ## Debt New businesses often raise debt finance to start or grow thir business. It usually involves borrowing money from a lender that you promise to pay back with interest. The good thing about debt finance is that you don't have to give up any ownership of your business, as you would with equity financing. However, you are committed to making regular repayments, which brings additional risk. Debt is a significant obligation, and the most common forms for startups include: * Startup Loans - in addition to ordinary personal loans, lenders like the British Business Bank offer government-backed [startup loans](https://www.startuploans.co.uk/). Unfortunately, such loans often require personal guarantees which are not ideal if things don't work out. * Asset Financing - where an asset (like a food truck or coffee roaster) is used as collateral, which may reduce the interest rate and personal risk. * Merchant Cash Advances - existing businesses might be able to borrow against future cash receipts from their merchant service provider or payment processor. It might be a little more expensive in terms of the overall interest you'll pay, but it may help to reduce risk. #### Useful loan resources * * * [https://www.betterbusinessfinance.co.uk/](https://www.betterbusinessfinance.co.uk/bbf/find-finance) ## Equity Equity financing involves selling part of your business, in the form of shares, to investors in exchange for money. This can be an attractive route for startups because, unlike debt, there's no obligation to repay the funds. In theory, investors provide the money in the hope that the business will be successful and they'll earn a return on their investment. But in reality, many startup investors are friends and family of the founder(s) - willing to take a risk without always fully understanding the financial risk. Truly financially-motivated startup investors will only invest in businesses with the potential to generate a massive return on investment. A common benchmark is to aim for a return that's at least ten times (10x) the amount of the original capital provided. #### Tax Efficient Investment Schemes If you go down the equity route you should also look into the [SEIS scheme](https://seedlegals.com/resources/seis/). It is a very generous tax-efficient UK scheme that may make investing in your business more attractive. We partner with SeedLegals to help you through the process. ## Alternative Finance There are ways to raise money without debt or equity but they involve a mixture of marketing and a healthy dose of luck. * Crowdfunding - websites like Kickstarter or GoFundMe allow businesses to raise small amounts of money from a large number of people. This can be an effective way to raise money but it's super-competitive. We've seen clients raise £10k-£80k though it helps to have a large and receptive personal network. * Grants - there may be grants available for you so it's worth searching online. Grants are usually allocated to specific areas or disadvantaged demographic groups. We'll also mention one last concept that is important to keep in mind after you raise money. {% hint style="success" %} Bootstrapping - when a founder starts a business with little capital, using money from personal income and savings, and by operating at the lowest possible cost. {% endhint %} Bootstrapping is easy to forget when you have a large pile of cash in your bank account. But it's almost always a good idea to operate at your lowest possible cost. By saving money, you'll have more free cash flow to repay founders, investors, and double down on your own growth. # Travel Expenses For Directors Tax deductible travel rules for owners and directors of companies
## What Counts as Business Travel? You can usually claim travel and incidental costs when you: * Travel between different workplaces * Go to work appointments * Engage in other business-related activities We'll explain incidental costs at the end of this post. Our initial focus will be on what qualifies as business travel. #### Commuting is not a Business Expense You cannot claim tax relief for commuting costs, but there are two exceptions: 1. When you 'work' at a temporary workplace 2. When your home qualifies as a workplace Don't try to game the system though - HMRC have extensive rules around permanent and temporary workplaces. We'll explain them in more detail next, but in most cases you'll intuitively know whether a workplace is permanent. ## Temporary and Permanent Workplaces #### What is a Permanent Workplace? A 'permanent workplace' is where you: * Spend at least at 40% of your working time * You expect to work for at least 24 months Any location where you spend all of your working time, even if it's less than 24 months - counts as a permanent workplace. #### What is a Temporary Workplace? Conversely, a temporary workplace is where you work for short durations or for less than 24 months. But as mentioned above, if you work at one location - even if it's for less than 24 months - then it counts as a permanent workplace. ## When Home Qualifies as a Workplace Your home can qualify as a workplace if you: * You conduct material fee-earning duties from home * Your home is where the company’s registered office is based If you only carry out basic admin at home, then it is unlikely to qualify as a workplace. But if part of your contract has to be performed from home, such as providing out-of-hours support, then it might qualify.
And if home qualifies as a workplace then you may claim travel expenses between home and any another workplace - whether temporary or permanent. ## Incidental Costs Hotel costs, meals and drinks are all allowable business expenses when incurred during business travel. # Mileage Expenses and Claiming VAT on Mileage {% hint style="info" %} Check out our [guide to travel expenses](/business-expenses-for-companies/travel-expenses-for-directors) to find out what qualifies as business travel. {% endhint %} ### Mileage Claim For every business mile in a personal car you can claim 45p per mile for the first 10,000 miles and 25p per mile above this. ### VAT Claim on Mileage You can also claim VAT at approximately 2p-5p for every business mile undertaken in a personal vehicle. {% hint style="danger" %} You cannot claim the cost of petrol used in a personal car. This is because you cannot separate business-fuel from personal-fuel. **This is a common mistake.** {% endhint %} The 45p mileage allowance is calculated to cover all vehicle costs like fuel, repairs, MOTs and all other running costs. You should not claim any of these costs through your business. Instead you should claim the approved mileage rate above. Since the mileage allowance includes fuel - and because fuel is subject to VAT - you are allowed to claim VAT that is built into the mileage allowance. HMRC will also expect you to keep petrol receipts that match (approximately) the VAT you claim. # Employees or Contractors **Employees** must be paid through payroll, have employment rights, and are entitled to benefits like holiday pay. **Contractors** that invoice your business are typically self-employed or run their own limited companies, which are sometimes known as Personal Service Companies. As a general rule, less tax is paid by both parties when your business pays a worker as a contractor. This is why HMRC sometimes challenge business-contractor relationships. ### Burden of proof and taxation The latest off-payroll rules (aka IR35) do not apply to small businesses of all types. This means the responsibility for applying IR35 remains with the contractor. We recommend that you inform your contractors that they may need to apply IR35 on any income generated from their work with you. You can tell them to use HMRC's [Check Employment Status for Tax](https://www.gov.uk/guidance/check-employment-status-for-tax?ref=numble.co.uk) tool and to save the results to support their decision. {% hint style="info" %} Businesses are 'small' if they meet two of the following criteria: * Annual revenue not exceeding £10.2m * Balance sheet total not more than £5.1m * Average of no more than 50 employees {% endhint %} ### How to decide when to pay someone through payroll There are a large number of factors but as a general rule we recommend that you strongly consider adding workers to payroll when you start to guarantee them shifts or hours per week or month. Our infographic outlines the relevant factors that determine whether a worker is an employee or a contractor.
{% file src="/files/0rZfkzm9TmheZFTxIaDY" %} Download Infographic {% endfile %} There are many factors to consider and you can also use HMRC's [Check Employment Status for Tax](https://www.gov.uk/guidance/check-employment-status-for-tax?ref=numble.co.uk) tool to help you.