Although the last tax return may seem like a distant memory (and one you may not want to remember soon) but it always pays to be prepared.
By Diane Pilling · 24 Oct 2012
Although the last tax return may seem like a distant memory (and one you may not want to remember soon) but it always pays to be prepared. Over 19% of all Small to Medium enterprises missed out on tax breaks and grants while 10% said they had made late VAT payments or missed tax returns . Furthermore some 16% were unsure who could help them and a further 15% said they couldn’t understand new rules. With most small to medium enterprises counting the pennies, giving more to the tax man than is absolutely necessary, is not an option. Neither is paying for an accountants services….
Tax returns are not required for salaried employees, (or technically speaking, anyone under that PAYE system that is earning under £100,000) but are required for:
Controlling company director, but not a director of a non-profit organisation or anyone not receiving any payments or benefits
a minister of any religion
the self-employed including someone in a partnership
income from savings and investments of £10,000 or more
income from untaxed savings and investments of £2,500 or more
income from property of £10,000 or more before deducting allowable expenses or £2,500 or more after deducting allowable expenses
employment income on PAYE above £100,000
anyone lived or worked abroad or aren’t domiciled in the UK
have Capital Gains Tax to pay
anyone who owes tax and it can not be collected through the tax code. For instance when the taxable Basic State Pension is greater than the Personal Allowance
These startling statistics make it even more necessary for early planning for tax returns. As mentioned in previous blogs, keeping up to date with book keeping will help enormously when it comes to the dreaded tax return. If a little help is required Affordable Accounts can help out with anything, but hopefully these tips will get you a long way there without getting in contact:
1. Preparation is key , make sure that you start early so as to avoid a mad rush come deadline time.
2. Related to the first, Learn from your mistakes . If your expenses folder was too vague last year make sure you have it in better order this year
3.Remember that the HMRC is there to help. Their Self Assessment assistance is available here .
4. Bookkeeping is key. Little and often throughout the year is much easier than all at once.
Keep all receipts in alpha-numeric order and that means all.
Be aware of how much tax will need to be paid and when it needs to be paid so you have enough money in the bank to pay it.
On a final note, recent moves have been made to make tax returns easier for small to medium sized businesses. Hopefully some of these changes in tax returns will come into effect soon , but there are no promises…
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