We at PKW Accounting understand the trials and tribulations of working within the judicial system. For many Barristers, accounts production and tax compliance are additional unwanted aspects of their practice. Often low in priority until deadlines begin to loom.
Having your affairs up to date in real-time provides numerous benefits, most notably:
o Cash-Flow Management – being aware of tax liabilities well in advance avoids unexpected shocks and allows you to make the best use of any tax funds by knowing how much is required and when tax liabilities are due
o Tax planning opportunities – awareness of assessable profit can help mitigate tax liabilities. Considering a pension contribution, would it be more tax efficient in the current tax year or the next? Planning on purchasing a car? Should you lease or purchase? Is purchasing in this accounting period or subsequent more tax efficient?
We aim to deal with your accounts and tax affairs with minimal input and inconvenience to you by liaising with Chambers and using technology to automate the flow of information required to deal with your affairs as much as possible. If you opt for our MTD service, there should be no requirement to have spreadsheets or folders of receipts. Simply send receipts for out-of-pocket expenses via your allocated email address or photo on the phone app.
I was previously with a large, well-known firm.
I switched to PKW Accounting in early 2015, when I heard that Peter was setting up his own firm. I am absolutely thrilled with the service provided and have recommended Peter to all of my colleagues.
He is extremely helpful, as well as being exceptionally efficient and well-organised. He always keeps me in the loop but never inundates me with queries or requests for information: it is the perfect level of involvement and I trust him completely to get on with things, which he always does in good time (no matter how late the information from me sometimes arrive!). He is also exceptionally good value for money: he has saved me very considerable sums in tax and his rates, when compared to other firms, are extremely competitive. I would not hesitate to recommend him.
'Peter Ward provides an excellent, efficient and cost effective service for barristers. I would recommend him without reservation.'
"Peter knows exactly what a barrister wants from an accountant. He works efficiently in conjunction with chambers in order to provide a low hassle, high quality service at a very reasonable rate."
"PKW Accounting gives an excellent level of service; taking care of all my accounting needs, keeping me informed of developments which may affect me, and always being on hand to answer any queries great or small. Moreover, the level of service comes at a very competitive price.”
“I had used the services of my previous accountant for over 10 years. I thought I had been getting good value for money. I was then recommended to Peter and I have now used him for three years. He provides me with first-rate service and is considerably better value than my previous accountant. I recently remortgaged and Peter helped me with much of the documentation required. I can’t recommend him highly enough.”
I find Peter to be approachable, knowledgeable, and responsive. He is always available to answer questions, and provides clear and reasoned advice within a short time. Peter was my accountant when he was part of a larger firm, and I was impressed with the quality of service then. That quality of service has improved since Peter set up PKW Accounting, and I now enjoy a better service at considerably lower cost. I have already recommended him to colleagues in chambers, and will continue to do so in the future.
“I used a well-known firm for many years, and switched to Peter on the recommendation of a colleague. It was an excellent decision: Peter is straightforward, easy to deal with, and efficient.”
“As a busy barrister I depend greatly on the advice of my accountant. When Chambers recommended Peter to me I was reluctant to change my accountant who had advised me for 15 years. I am so glad that I instructed Peter. He always deals with any query promptly by email and is at hand to give advice. I am impressed with the barrister updates he provides me with. He recently advised me on my wife’s Child Benefit claim and saved me a lot of money.”
"Peter has dealt with my accounts now for the past 5 years and I am very happy with the service he provides. He deals with matters quickly and efficiently, is reliable and gives timely reminders when information is required. On tax matters his advice is clear and no-nonsense, which is much appreciated! I have no hesitation in recommending him."
“I have always been impressed with Peter’s responsiveness and attention to detail. Everything I need for my accounts, VAT and tax returns is taken care of with minimal effort on my part. Excellent service highly recommended.”
“Peter provides an excellent professional service which comprehensively deals with my accountancy needs.”
“Around five years ago I moved to Peter after he was recommended to me. I value his quick and sensible advice and efficient service and I am really grateful to him for making the administration of my accounts as easy as it is now.”
On 5th January 2015 the BSB began accepting applications for Barristers to operate as alternative business structures.
Then on 8th July 2015, after years of consultation regarding Barristers and Incorporation, George Osbourne announced major changes to the taxation of dividends that drastically reduce the benefit, from a purely tax perspective, of incorporating. These changes would come in to force from April 2016.
At that point those considering incorporating, mainly due to the tax advantages, opted to remain as a self-employed individual. Most of the tax advantages would no longer be available. But, the more stringent record keeping requirements, red tape, compliance and larger admin burden of incorporating would remain.
However, depending on personal circumstances, there are still occasions where trading as a limited company may prove beneficial. Please find below a few examples of those circumstances:
o Lay Person – you are able to set-up a limited company whereby some shares are held by a lay person (non-earning spouse). Allowing some of the limited companies distributable profits to be paid to the lay person in the form of dividends.
o Avoiding higher rate tax brackets – as a self-employed individual you are taxed on all earning within the tax year. But operating as a limited company you are taxed on the income you receive from the company. Therefore, if your income crossed tax brackets you can opt to avoid the higher rate tax bracket.
o E.g. profit in year 1 = £110,000, in year 2 = £90,000. Income between £100,000 and £125,140 has an effective tax rate of 60%. Operating as a limited company, you can choose to have a personal income of £100,000 in both year 1 and year 2. Avoiding the 60% effective tax rate
o Approaching retirement – depending on your personal circumstances you can operate a limited company and leave excess profit in the company, as mentioned above you are only personally taxed on the income received from the company. Upon retirement you can then use excess profits to subside pension income, making use of any basic rate band available.
Other points to consider:
o Pension contributions – as a self-employed individual you receive tax relief on pension contributions at your effective tax rate. Operating through a limited company you obtain relief on the higher of your relevant earnings or the basic amount of £3,600. Dividends are not classed as relevant earnings.
o Corporation tax rates – set to increase to 25% (profit above £50,000) by 2023
o Cash Basis for Sole Traders only not limited companies
If you require further information, then please use our enquiry form (Contact us) for one of the following:
o A free consultation regarding how incorporation will affect your individual affairs.
o A free seminar at chamber for a group of members regarding incorporation.
o A PDF copy of our incorporation pack
PKW Accounting Ltd
Company Reg No. 08648961
Registered in the U.K
St. Helens | Merseyside