Business and the year 2020 did not mingle well together at all, which makes the tax situation even more complicated than it previously was in the UK. The following tips should prove to be quite useful and help small businesses manage their taxes in a timely manner, even in 2020.
Missing Figures: Delaying Will Not Help
It’s natural to be tense about missing figures and confirmations, especially when it’s almost time to file your tax return. However, delaying the return will only make things worse. Instead of delaying both payment and filing, just make an estimate and file accordingly in time to avoid fines.
If there’s a discrepancy between what you had paid and what the late figures and documents have confirmed about your income, include the details and submit the amendment to the HMRC online. Unless there’s a reason to suspect foul play, the company will not be penalised for an amendment.
Get to Know More About the Fines and Penalties
Now, this is more important than most young businesses may realise. For example, we know that everyone and every establishment that fails to file their taxes in time will be penalised, but did you know about the following?
- The fine is £100 if you miss the window by even just a minute
- The £100 fee will be charged for late submission in addition to a late payment fee, in case your payment was late as well
- Even if you have had a terrible year and you do not owe tax, failing to file in time will still result in that £100 fine
- The fines and penalties will keep on mounting, unless you pay them all as soon as you can
Find Personalised Tax Services
Personalised tax services, or personalised tax help is quite simply the best solution for small companies to opt for, as far as tax management in any year is concerned. H.M. Williams provides personalised tax services, which also includes extensive and specific financial management guidance. Their automated interface ensures that you will never have to worry about timely tax payments, file submissions, or even amendments at all. From tax planning to managing tax investigations, their services come as a comprehensive solution. In general, outsourcing for personalised tax services is a lot cheaper than putting an entire accounting department on the permanent payroll for tax management.
Receipts: Don’t Lose Them
Every time the company gets a business receipt, ensure that it has been authenticated and updated into the records appropriately. It needs to become a policy throughout every department, so that no receipt goes missing, and thus, unreported to the HMRC.
Aside from the troublesome receipts, there are also other documents such as bank statements and P60s to worry about. If you have access to personalised tax services, though, these should not be an issue, but the data will still need to be supplied to the managing company continually in order for them to accurately keep your books and prepare the filings in time.