As I’m sure you are aware, filing your tax return is a very large and daunting task, especially for people who are self-employed or own their own business. Self-assessment is a system used by HMRC, that collects the information needed to calculate how much income tax a company owes. If you run your own business, you will need to go through this to find out exactly how much you owe. Although this may seem overwhelming, there are some helpful tips which can make this process a lot less stressful.
One of these tips is to always keep accurate records throughout the year of all your incoming and outgoing payments. This will make it a lot easier at the end of the year when you come to file your tax return.
Use accounting software. There are many software apps that are designed to help businesses keep track of their accounts. They are also great for filing your tax return as you will have all your spending documented in the software. Examples of these types of software are Sage and Xero.
Get help from an accountant. If you are struggling to find the time to sit down and work out all of your finances, you may have issues at the end of the year when it comes to filing your tax return. Paying an accountant to do this will relieve all the stress out of the situation and will leave you a lot more time to focus on running your business. If you live in the Tewksbury area, you can find Tewkesbury Accountants near you. An example of one of these would be https://www.randall-payne.co.uk/services/accountancy/tewkesbury-accountants/
If you do not file your tax return properly, you can face some consequences. You may face interest charges, penalties, and even legal action if you continue to fail to file your tax return properly. Additionally, if you do not file your tax return on time, you could miss out on tax deductions and credits that could help you save a lot of money. Because of this, you may choose that the best path for your business is to employ an accountant to take care of your tax returns for you. This will give you peace of mind that you are not at risk of facing any of the penalties.
Eleena Timmons