How to ensure you are paying the right amount of tax

How to ensure you are paying the right amount of tax

How to ensure you are paying the right amount of tax

The time is soon arriving where self employed individuals will need to be ensuring that they have filed their self assessment tax return and made the payment. The deadline for this is 31st January each year. It is important that when you are self-employed, whether as a sole trader or a director of a business, that you are accounting for your business finances correctly. Incorrect accounting will have an impact on your tax return and this could mean you end up paying either more or less tax than you should do.

How to ensure you are paying the right amount of tax

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Accounting for your business can be overwhelming, especially if you don’t feel you have the right skills. To overcome this you can work with a Bookkeepers Braintree way such as yourbookkeepers.co.uk/bookkeepers-near-me/braintree. These professionals will help you to ensure that your accounts are in order ready for filing.

How to ensure you are paying the right amount of tax

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Businesses pay tax on the profits that are left in the business and sole traders will pay tax on the profits that are over their tax threshold level. It is for this reason that it is important that you make sure you are correctly allocating all income that comes into your business, as well all business bills and expenses that you have. In some cases there may be some expenses that you have paid for through your own account, you should ensure that you repay these before the end of the tax year.

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