Dissolution or Restoration

Many accounting firms offer a very simple but limited service. They will prepare your accounts from your accounting records and produce sets of reports to comply with your obligations.

Although this is fine, we believe that you would like a better service.

If you engage Murphy Thompson Moore as your accountants, we will fullfill the accounting needs and build a complete picture of your businesses financial position as we do this.  We’ll also prepare meaningful reports that explain the detail behind the numbers and what this means for the future of your business.

We will discuss the financial progress of your business at regular meetings or telephone conferences.

Your records can be informative about the recent past, but they can also serve as a useful guide to the coming year by helping you pick out trends and prepare for the year ahead.

We can carry out our work for you using cloud accounting software or desktop software. Where we use cloud accounting software, you will be able to log in to your accounting records and work entirely independently of any work we may be doing for you. If you have desktop accounting software we can connect remotely using Remote Desktop or other similar software.

If you are in business you need to keep up to date business records, ensuring you comply with HMRC's requirements. These requirements include ensuring your records up to date by regular maintenance and are never more than three months behind at any time.

At Murphy Thompson Moore we can deal with the maintenance of your records for you.  Alternatively we can assist you with software and training to enable you to undertake this task yourself.   We can tailor our working processes to suite your needs by using either desktop or cloud based accounting software.  For smaller businesses, custom spreadsheets can make your records much more easy to manage.  We can advise as to the best system for your business.

Some clients prefer to concentrate solely on their business and will rely on us to provide a complete bookkeeping and accounting package. We’re very happy to meet this requirement as part of our service which can be incorporated in our fixed fee service.

For VAT registered clients, we can maintain your records as part of our VAT preparation and filing service.

If you wish to discuss how we can help you maintain your business records, please Contact us for a discussion and we will be happy to advise.

If you have employees, you will need to operate payroll. You can do this using a payroll bureau or you can ask us, as your accountants, to do this for you.

Payroll requires regular, efficient calculation of pay due and submission of payment information to HMRC on or before payment is made. The current system required by HMRC is called RTI. This stands for Real Time Information.

An added complexity of employing staff is that you now need to set up a Workplace Pension Scheme.  For many employers this can be a daunting prospect.  Considerable preparation is involved and if you have a “staging date” (which means you have been notified of the date by which you must have a work place pension in place by the Pension Service, you need to act now)

Payroll and set up of work place pensions are best handled by your accountant. There are a number of providers in the market and costs can vary significantly. So can the value of contributions to your employees eventual pension.

We recommend an early discussion with Murphy Thompson Moore so that we can assess your current position, determine if you need a payroll scheme and whether or not you need to have a work place pension.

We can run your payroll efficiently and in line with your normal pay frequencies. Our simple monthly fee covers all pay runs, leavers and joiners and end of year processing.

If you already have a payroll scheme and are considering a transfer, please be reassured that transfer of an existing payroll is handled by our team for you, leaving you free to concentrate on your business.

The profits of your business are subject to tax. The tax you pay will depend on the structure of your business.  For limited companies profits are taxable under the corporation tax system, whereas sole traders and partnerships are dealt with in the self-assessment system.

As a director of a company you will have to file a tax return.

As a client of Murphy Thompson Moore, operating through a limited company, you can expect a service which includes the preparation your accounts, corporation tax return and all tax computation.

As a client of Murphy Thompson Moore, operating as a Partnership, we will prepare the partnership accounts, the partnership tax returns and the individual partners tax returns.

For Sole Traders, we will prepare the Self Assessment tax return.

As part of our service, we will look at your business profits and offer you advice on the most tax efficient way to extract profits from your business. Our advice will be straightforward and in plain English. We do not promote or advocate any tax saving schemes.

Tailoring your Share Capital

MTM can set up any share capital structure permitted by the Companies Act.

Ordinary shares, preference shares, redeemable shares, voting and non-voting shares, founder shares, golden shares and more.

Any class of shares can be specifically tailored to meet your requirements (See also 'Alphabet Shares').

Capital can be set up to meet Enterprise Risk Management (ERM) legislation needs, tailored to reward short term performance or issued so that future rights accrue.

If your requirement is succession planning we can assist you to re-organise capital to enable controlling stakes to be held until a suitable date or event.

Please note:

The term "Alphabet Shares" is widely used to describe different classes of
shares denominated by a letter (”A shares", "B shares", etc.).

Such shares can have attached to them whatever rights have been allocated in the company's articles or terms of issue and alphabet shares are used for different purposes in different companies.

Examples are:

Alphabet ordinary shares

Alphabet ordinary shares ("A Ordinary shares". "B Ordinary shares", etc.) are used for a variety of purposes. They are often used to enable a company to pay dividends at different rates per share to individual shareholders. They are also used in family companies and joint ventures and other situations where particular rights (e g. to appoint a director) are given to specific shareholders.

Paying different rates of dividend on alphabet shares.

Because dividends are often a more tax-effective means of paying income to
director/shareholders than salaries, many companies want the flexibility to pay dividends that are not proportionate to the shareholdings of the individuals. In such cases, all the A ordinary shares are held by one person, all the B ordinary shares by another, and so on. Then a dividend can be declared on the A ordinary shares at one rate and on the B ordinary shares at a different rate. To pay a dividend at one rate on A shares and at a different rate on B shares, etc., there must be a clause in the articles allowing the directors (or the members, as appropriate) to vary the dividends between one class and another, to override the provisions in the Model Articles or Table A that require dividends to be paid in proportion to the number of shares held. In other respects (voting, rights to capital, etc.) the different classes of ordinary shares usually rank equally.

Alphabet shares for employees.

Sometimes company employees are awarded shares to enable them to be paid part of their remuneration in the form of dividends. Structured correctly, such schemes can provide both an incentive for employees to seek to maximise the company's profits and a tax-efficient means of paying them Such schemes vary. Often the shares will be non¬ voting and may be redeemable at par value (i.e. £1 on a £1 share) to enable the shares to be taken back from the employee on ceasing to be employed. In many smaller companies a different letter of the alphabet is used for each employee for maximum flexibility (provided a power to vary dividends is included in the articles, as outlined above).

There have been some examples of alphabet share schemes being used in ways that have been challenged by HMRC for tax or National Insurance contributions evasion or income shifting. Careful consideration With competent professional advice must always be given to the tax issues before instigating such schemes.

Quite apart from the alphabet share schemes described above are approved employee share schemes where the shares are not set up as separate alphabet shares for each employee. There are tax incentives for such schemes and more details are available on the HMRC website.

Please note: