Working for yourself has many wonderful benefits but one thing that can feel a bit daunting is having to ensure you have accurate records of your incomings and outgoings, that you have correctly submitted the figures to HMRC and that you are clued up on cash management.
If you have a small business, you may have many questions about how you record your earnings and pay income tax. This is because if you're self-employed, you'll pay tax differently to employed individuals. As a self-employed individual you'll pay tax based on your profits rather than gross income via a self-assessment tax return. It's advisable to use an accountant as they can handle bookkeeping and will ensure they have filed your company and HMRC returns on time.
If your business earns less than £82,000 per annum in earnings, then HMRC will allow your business to use cash-based accounting. You will need to provide HMRC with details of your actual income and expenses in the tax year. This type of accounting is best suited to sole traders and small businesses. Many individuals prefer to enable an accountant to take care of this, to help keep their bookkeeping streamlined and all their earnings reported accurately.
An accountant will understand your business needs and expenses and will ensure you are always paying the correct amount of tax.
An accountant will ensure that you are claiming all the expenses you are entitled to claim, which offers great peace of mind for you. They will be able to sort out your end of year tax return which can be a bit of a hassle and may be a source of stress or anxiety for you. It's likely to be your least favourite part of running a business! An accountant will be on hand to explain anything you don't understand and answer any questions you may have.
They will certainly be an invaluable asset for your business and will take away much of the stress and worry you may have about whether you may accidently be paying too much or too little tax, may be filing the tax form incorrectly, or not accurately keeping a record of your books,
You can find local accountant via word of mouth or you can look for an accountant online. A quick Google search of accountants will give you results for an accounting firm for small businesses and you can then take a look at their websites, see what services they offer and read reviews to see if they might be a good match for you. Many of these accountants will be highly experienced, will have a wealth of knowledge and will also use top of the range technology to assist them. You can read reviews of their services to see if other people rate them.
When you contact an accountant, you can often get a quick quote from them before arranging to further discuss your needs with them which will give you an idea if this is an affordable option for you. What is great is that you can often tailor the service exactly to your requirements, for example, if you want to handle your tax return yourself, that can be left out of the package.
For more help and advice for whether an accountant is the right step for your business, check out this article.
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