FAQs

• Why Use The Directors Choice?

  We firmly believe that every business is different and needs a different expert to suit their needs. The Directors Choice only work with trusted experts that can provide you with quality service.

  -We have an ever growing panel of accountants ranging from Bookkeepers to large specialist firms

  -Over time more and more reviews will be added by directors like you

  -Refine by industry, specialised area, even size of firm to pick your ideal firm for your business

• What is the difference between an accountant and a bookkeeper?

  The work of a bookkeeper and an accountant overlap.

  Bookkeeping comes first and it focuses on recording and organising a businesses financial data.

  Accounting comes second and focuses on the interpretation and presentation of that data. Accountants are generally more qualified to give advice on tax matters than a bookkeeper.

   

• Can an accountant also be a bookkeeper?

  An accountant can also be considered as a bookkeeper, as some accountancy practices may be able to help with bookkeeping.

  However, a bookkeeper cannot be considered an accountant without proper certification.

• Do I need a bookkeeper or an accountant?

  This depends on the skills and tasks your business needs completing. Consider this when choosing if you need an accountant, bookkeeper or someone who can do both. Below are some skills of an accountant and bookkeeper.

  A bookkeeper can record financial transactions, create invoices, manage payroll and balance the books.

  An accountant can audit accounts, provide financial advice and manage the accounting processes.

• What is general accountancy?

  A small business may need a general accountancy package which would include:

  - Annual accounts

  - Bookkeeping

  - Corporation tax returns

  - Your personal tax return

  - Monthly & annual payroll returns

  - Quarterly VAT returns

  - Advice on tax avoidance legislation (IR35)

  - Daily advice

  - Suggesting ways your business could save

• What is Research and Development (R&D) Tax Relief?

  R&D Tax Relief may reduce company tax bills for businesses that spend money developing new products, processes or services - or even improving existing ones.

  Your business could be eligible for an R&D Tax Relief claim, which can come in either a cash payment and/or a reduced Corporation Tax bill.

• What is an example of an R&D Tax Relief project?

  Research and development to improve an industry (such as cosmetics, cyber security, manufacturing, waste management, food & drink).

   

  These projects do not need to be laboratory-based. You could claim for projects such as;

  - testing different materials to improve or find a solution (e.g. on a construction site or in manufacturing)

  - designing and making products or bespoke materials

  - moving a legacy system (old method, technology computer system or application programme) onto the cloud

   

  Qualifying costs in your R&D claim include:

  - Staff costs

  - Agency workers

  - Subcontractors

  - Software license costs

  - Utilities

   

  You can also claim for 'failed' products.

• Am I eligible for R&D Tax Relief?

  To be eligible for R&D tax relief, your business needs to complete a project. The project may research and develop a new process, product, service or improve an existing one.

  The project must be innovative and in science and technology.

  To claim, you must be able to explain how that project:

  - looked for an advance in science and technology

  - had to overcome uncertainty

  - tried to overcome this uncertainty

  - could not be easily worked out by a professional in the field

   

  One of our trusted R&D Tax Relief Specialists will be able to determine your eligibility and get maximum savings for you and your business.

• What are Capital Allowances?

  In a business, 'capital expenditure' is usually items that provide a benefit for trade. This is not deductible from trading profits, so businesses can get tax relief - Capital Allowances.

  You can claim Capital Allowances on plant and machinery, such as:

  - Equipment

  - Machinery

  - Business vehicles (e.g. vans, lorries, business cars)

• Am I eligible for Capital Allowances?

  Most eligible businesses are unaware that they can claim Capital Allowances.

  Some examples of what you can claim for include:

  - Costs of demolishing plant and machinery

  - Integral parts of a building (lifts, escalators, air-conditioning, electrical systems, etc.)

  - Some fixtures (fitted kitchens, bathroom suites, fire alarms, CCTV systems, etc.)

  - Alterations to a building to install plant and machinery (but not building repairs)

   

  Speak to a Capital Allowances specialists to determine if you're eligible and get the maximum claim for your business.

• What are Patent Box Claims?

  Patent Box Tax Relief is administered by HMRC and rewards innovative companies in the UK.

  Patent Box reduces corporation tax on profits for companies that keep their Intellectual Property (IP) within the UK.

  Many businesses think their IP isn't patentable, or that the process of patenting is too expensive. Patent Box aims to overcome these misconceptions and the tax relief scheme could potentially cover any patent costs.

• Am I eligible for Patent Box Claims?

  To be eligible for Patent Box Tax Relief, your company must:

  - be liable to pay Corporation Tax

  - be making profit from commercially exploited patented innovations

  - own qualifying patents or exclusive rights to those patents

   

  You don't need to own the patents to qualify for Patent Box Tax Relief. You may hold a patent and license your technology to pass to others - which they develop. Meaning, you can still qualify despite not being that patent holder.

  A patent can only qualify for the scheme if the UK Intellectual Property Office, European Patent Office, or specific EEA countries grant it. Patents granted by French, Spanish, Italian, US, and Japanese offices are excluded from the scheme.