Starting a small business is hard enough with all the challenges a startup has to face in its first few years of operation. If you add the complexity of filing taxes every year, the idea of running a new business seems terrifying. If you want to lessen the burden of filing and keeping track of your taxes, here are some essential tax tips you should consider, according to a couple of clever tax accountants.
Tax Tips for Small Business Owners
Here are four tax tips for your small business.
1, Meet Your Deadlines On Time
Deadlines are important no matter what industry your business is in, and the same goes for tax deadlines. If you’re working via your own limited company, make sure you submit your annual accounts, tax returns, and Companies House paperwork accurately and consistently on time to avoid penalties.
On the other hand, those businesses working as a sole trader or partnership must submit a self-assessment return by the 31st of January every year, plus pay any tax liabilities by the same date. These are just some of the deadlines businesses have to face every year in order to keep up with their tax obligations. Be sure to don’t miss any of them so you won’t face any problems and penalties.
2. Keep Accurate Records
Keeping accurate records at all times is the key to making your taxes a whole lot easier to deal with. It’s best to always keep all your invoices and receipts in a safe and secure place, whether they’re digital or paper copies. Businesses should keep a minimum of six years’ worth of records, according to the HMRC. The good news is that all of your records should be automatically secured within your online accounting software account if you’re using a cloud-based accounting system.
3. Maximise Deductions
Paying taxes can eat up a lot of your profits if you’re not careful with it. That’s why responsible business owners should always try to maximise the number of deductions they can claim for their taxes. While the allowable deductions from the tax system is a bit complex, it’s worth all the trouble as it can significantly decrease the amount of tax you need to pay. Tax deductions mainly fall into two main camps, which are expenses and capital allowances. Make sure you review both and gauge what deductions you can actually claim. Remember, file only those deductions that you are eligible for. Don’t even try to claim deductions on things that don’t apply to you, or you’ll end up in trouble.
Cheap accountants in London will help you out with taxes. We provide support for all types of businesses. Bring us on board to handle your accounting and taxation needs.
4, Get a Good Accountant
Any business that plans to be successful in the next few years should always look forward to hiring an accountant to help them with their finances. There are many accountants in London, and they serve businesses well by helping them make sense of their taxes and keep them on top of everything. A good accountant can be your most important advisor and help you save money that you otherwise wouldn’t even know you could do. So make sure you take the time to hire an accounting or an accounting firm you can trust to help you manage your business.
For any small business owner, taxes have always been one of the most challenging aspects of running a company. The tax system is complicated, so these tax tips should somehow help you get through those challenges.
Cheap Accountants has been providing a range of tailored accounting and taxation services to individuals and small to medium-sized businesses. Our professional team of accountants have more than 40 years of combined experience in providing quality services to the business community in London. If you’re looking for cheap accountants in London with all the right expertise, we are the ones to call. Contact us today to get started!