From filling out the forms to knowing what you need to include and what you can claim back, business tax can be a complicated matter for any business owner.
Having somebody on hand who you can call upon at any time and knows the ins and outs of the tax world could help you out massively, ensuring you never pay a penny more than you have to and never incur any fines or penalties.
Maybe there is something you don’t understand, or you don’t know what is and isn’t taxed. Returns, allowances and rebates all fly over your head. Well, you can get help for anything tax-related from the right accountant.
You don’t necessarily have to hire somebody to fill out every part of the tax return and completely overhaul your bookkeeping. An online accountant can work on individual segments of your accounts, or simply tell you how best to approach every area yourself.
How Can An Accountant Advise Me On Tax?
You may need help when it comes to:
- Company Accounts and Tax Returns: Filling out the form based on your accounts and bookkeeping. An accountant could give advice and ensure everything is in order, so the data is correct
- Timings: Everything is due at different points, yet being just a day overdue can mean heavy fines. Accountants can talk you through the dates you need to prepare for
- Taxable And Non-Taxable Income: You don’t want to include anything on your income which doesn’t need to be there, but likewise missing something could prove an expensive penalisation. Accountants can unblur the lines, or provide you with software which automatically categorises expenditure
- VAT: Advice on when you need to sign up, if you’re best signing up even if you’re under the threshold, what needs taxing and how to claim any back
- Capital Gains Tax: How best to dispose of an asset if you want to avoid paying a large amount of tax, keeping track of your profits and limitations, and assessing market values
- Capital Allowances: Businesses can claim valuable tax reliefs to reduce the after-tax cost of investments into infrastructure, from equipment to fixtures and property, and an accountant can tell you what is applicable and software allows you to split it all automatically, giving real-time finances
- Challenging Decisions: You may wish to appeal a late payment penalty or a tax calculation and feel you are due a refund. An accountant could give you advice on how best to do this, or spot anything you may have missed
- Insolvency Advice: If you are unable to pay your tax bill or are ceasing trading, an accountant could give you advice and possibly represent your business on your behalf when dealing with HMRC
- Time To Pay (TTP): A TTP arrangement can allow HMRC to collect tax cost-effectively for your business over 12 months. Accountants can advise on how best to approach this
Making Tax Digital
HMRC have recently embarked on a huge project which will insist that most businesses, including sole traders and landlords use computer software to keep their accounting records in one place. This software will automatically update HMRC with relevant data on their business income and expenses, and you’ll be able to submit accounts digitally.
Many online accountants have been embracing this technology for years already, which will make things easier for all business owners and keep you compliant with laws. They can offer advice guiding you through how to start optimising this, and you won’t turn back.
Can HMRC Help With Tax Advice?
HMRC provides a service for those who need a bit of extra help with their tax and can decide if you need to be placed in contact with somebody more experienced to help.
However, there may be issues such as non-taxable income and helping you pay less tax which they are unable to help with. An accountant can provide advice which works alongside your particular business, and look deep into the accounts of the business to work out the best possible income for you.