Pi Accountancy Swindon

How well do you understand VAT?

VAT, or Value Added Tax, is a tax on most goods and services.

When you buy something, the price usually includes VAT.

Businesses collect VAT from customers and pass it to HMRC.

You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period.

Do you understand Capital Allowances?

Capital Allowances allow you to partially or fully deduct the value of certain long-term assets from your taxable profits.

By reducing your taxable profits, you lower the amount of tax your business pays.

You can either deduct the full cost in the year of purchase or spread the deduction over several years.

If the claim exceeds your profit in the year, you can carry the balance forward to offset future tax bills.

Do you understand Depreciation?

Depreciation is the reduction in value of a business asset over time.

If you purchase a laptop today, it will gradually become less useful and less valuable over the next few years.

Rather than recording the full cost of an asset as an expense in the year you buy it, depreciation allows you to spread the cost over its useful life.

Do you know what Capital Expenditure is?

Capital Expenditure is the money a business spends on long-term assets that support operations over several years.

These assets include:
🧩 Buildings
🧩 Equipment
🧩 Machinery
🧩 Technology

These assets allow businesses to stay competitive, while responding to industry changes and customer demand more effectively.

Do you know what Business Rates are?

Local councils charge Business Rates on most non-domestic properties to funds local services.

You will usually pay Business Rates on properties such as:
🧩 Shops and retail units
🧩 Offices and studios
🧩 Pubs and restaurant
🧩 Warehouses and factories
🧩 Workshops and storage units
🧩 Guest houses and some holiday lets

You may still pay Business Rates even if you use only part of a building for business.

Do you know what SIC Codes are?

SIC Codes are five-digit numbers that describe a company’s main area of economic activity.

These codes help Companies House categorise businesses into industry sectors.

When forming a limited company, you must choose at least one SIC Code, but you can select up to four.

Do you know what a Confirmation Statement is?

A Confirmation Statement is an annual report that directors submit to Companies House.

It confirms the following details about your business:
🧩 Registered office address
🧩 Details of directors and shareholders
🧩 Standard Industrial Classification (SIC) codes to describe business activities
🧩 Share capital and structure

You must still file a Confirmation Statement, even if none of your company’s details have changed.

Have you ever used Hire Purchase?

Hire Purchase is a finance agreement for buying goods over time, instead of paying the full amount upfront.

Most hire purchase agreements include:
🧩 A deposit at the start
🧩 Fixed monthly repayments
🧩 Interest charges
🧩 A final option-to-purchase fee in some agreements

You can use the asset immediately after the agreement starts, but you do not legally own it until you make the final payment.

Do you know your Company Registration Number?

A Company Registration Number is a unique eight-character identifier assigned to every limited company and Limited Liability Partnership registered with Companies House.

Your Company Registration Number is required for several things, including:
🧩 Filing confirmation statements and annual accounts
🧩 Registering for Corporation Tax or VAT
🧩 Submitting tax returns and paying business taxes
🧩 Changing the registered address
🧩 Appointing or removing directors and LLP members
🧩 Selling shares or issuing dividend vouchers
🧩 Dissolving the company

Think of it as your company’s fingerprint, as it remains the same for the lifetime of your business.

Do you know the different Tax Identification Numbers?

A Tax Identification Number is a unique reference number, which HMRC uses several of to link you or your business to official tax records.

A request for a Tax Identification Number usually refers to one of the following:
🧩 National Insurance Number
🧩 Unique Taxpayer Reference (UTR) Number
🧩 Company Registration Number
🧩 VAT Registration Number
🧩 Employer Reference Number

Each number serves a different purpose, so you should always identity the purpose of the request first.

Because there are different Tax Identification Numbers, the process of obtaining them is also different, depending on your circumstances.