Getting organised from the start
Keeping abreast of your obligations where tax is concerned can prove to be tricky, especially when you’re managing and trying to grow a business. Letting things slip comes with it’s own set of problems and financial penalties, it can quickly become an all encompassing issue if even slightly ignored.
Getting organised from the start will bode well for your long term growth, keeping an eye on your accounts, setting and sticking to a strict budget while familiarising yourself with how to fill out a self assessment are essential moves you should be making. If for whatever reason you happen to be investigated in the future, knowing exactly what is happening with your finances will leave you in very good stead.
Organisation though doesn’t come naturally to everyone, it is a skill that can be overlooked especially when you’re racing to get a business running and profitable. If you’re finding it difficult to organise your tax matters, here are some great tips to help you stay on top of this.
Stop procrastinating & GET ORGANISED
I know we’ve just touched on this but it is the most important tip on the list, hence why it’s already been mentioned AND still goes first!
Keep a watchful eye on your accounts and keep a tight lid on your spending. HMRC ask that you keep hold of all your receipts and invoices for over 6 years after obtaining them. If you don’t have a stringent routine of collating them together you’ll no doubt regret it at a later date. Just chucking them all in a shoebox (you’d be amazed how many people still do that) is going to case you no end of headaches when you’re looking for receipts between set dates. Get a simple ring binder to file receipts away, it’ll cost no more than £10 for ongoing piece of mind. A simple late penalty will cost much more than that.
We also appreciate that when you first start out you’ll be bombarded by sales people who’ve found your information in bought new business data. Each call or visit (depending on the proficiency of the sales person) will sound like a tempting must have to a new business.
Tread carefully, do your own research and make an informed decision, not one in the heat of the moment. You may quickly find yourself in a number of costly 12 month contracts that you don’t need. Remember, any service you wish to take up should be working for your business, not the other way round.
Don’t skimp on the details!
If you don’t want to go through the stress of trying to prove your figures are correct, without having the evidence or a leg to stand on, you should keep clear concise records of everything you spend and receive! It should really be that simple but people still like to make this hard for themselves. It has been said that there are two certainties in life ‘…Death and taxes.’
With this in mind, why do people still get it so wrong? I’d like to add another certainty in life, if you don’t pay your taxes it will catch up with you. Don’t rely on your super human memory to ‘get you out of dodge’, you are only fooling yourself.
Even if you are Memory Master and current World Memory Champion, the chances you are not going to remember every single in going and outgoing from your business account.
Pay attention to the details, keep them organised (there it is again, that key word!) and you’ll have nothing to fear or hide. Just a clear road map of your financial goings on and an easy way to extract any information you need, when you need.
Educate yourself on where you can save and claim
There are so many areas that you can seek financial benefit from it can make your head spin. Many people are coasting through their business life not knowing how best to utilise the schemes put in place to help you, and more often than not, don’t even realise that there is help available to them. Obviously what you are eligible and entitled to changes on a case by case basis, this can put people off of seeking the truth and helping themselves to what is on offer.
There are so many things you can do to save money and pay less tax. If your VAT turnover is less than 150,000 pounds for example and you don’t have many expenses, you can register for the Flat Rate VAT Scheme. This allows businesses to charge the standard 20% VAT rate when invoicing but they pay HMRC back at a lower rate.
If you are self-employed then you can reduce your tax bill and help pay your childcare at the same time. Paying a percentage of your childcare through your registered limited company (through childcare vouchers) means that you can claim tax relief on the amount invoiced and reduce the total amount of corporation tax you pay. Not all parents qualify for this scheme so please make sure you look into this properly.
Let an accountant take the strain
Letting an expert take control of these matters really is the smartest choice for a business, especially one looking to grow.
We allow you to run your business the way you want to without getting bogged down with returns, payroll and anything else that could slow you down. We will also provide you with the advice you need to take your business to the next step, and beyond.
Our remit is not solely ‘crunching numbers’, for instance if you’re planning to start a business from overseas, we are here to guide you through the necessary steps to get you up and running the right way.
We also offer a Virtual Accounts department service whereby we can oversee every aspect of your accounts without the need to hire staff in house. This is an incredibly cost effective way to operate whilst ensuring your accounting needs are met as and when they need to be, without delay!
Essentially there are many ways in which we can help your business proseper, if you’d like to set up a meeting to discuss our capabilities further please don’t hesitate to contact us at Numerion Associates and one of our qualified tax advisors will be more than happy to help.
