In a previous article we suggested tips to prepare for the New Year and preparing your tax return, here are more reasons to get ahead of the game and how to do it.
1. This may seem obvious but learn from this year’s mistakes and plan for the next assessment. While you cannot log all the data early, getting some out of the way can be useful. Any repetitive charges which are unlikely to change can roll-over. Even making sure you make a monthly update and stay on top of the exercise can help. Managing to avoid any last-minute drama will help ease the procedure.
2. While you are carrying out this regular exercise, make a review of your bank accounts and reconcile them against your business records, accounts payable and receivable, and ensure that the statements match your business books.
Use an accountant
It is important that records match over all the accounts you access. It is crucial to remember that the more work you can do for your accountant the less time they spend on your books and the lower their fees may be. On this issue, outsourced accounting services such as those found at sites such as https://www.mushroombiz.co.uk/homepage/services/accounting/ can help to improve efficiency at this time of year, thus reducing costs.
3. Always remember what deductions can be made from your tax bill as well as what you need to pay. If you are self-employed, information can be found at the HMRC site. These savings can include property charges and services such as the internet if you work from home.
For small businesses, staff bonuses could lower your bill, as could any charitable contributions which you make. Staff parties and team-building events may also be deductible depending on the circumstances. Also remember that assets could be subject to depreciation and will impact your capital allowance.
4. Once your tax bill has been confirmed by HMRC, do not panic. If it has come as a surprise, there are options as to how you pay it. You can obviously pay in full on demand, but the Revenue offer alternatives involving setting up a payment to meet the cost in installments. You can also contact the Business Payment Support Scheme via the HMRC website and ensure you tackle issues as they arise.