If you run your own SME then there are lots of key tasks to keep on top of. One compulsory and essential job to bear in mind is your tax return.
For any new entrepreneurs out there, this is the process of informing HMRC what your business has earnt and spent each year so they can work out what tax you should pay them. Whether you are registered as a sole trader or for VAT, you will need to get your tax return submitted in good order.
Unfortunately, many business owners do not give this key task the attention it merits. Here are the three most common mistakes UK businesses make around filing their tax return.
Not being organised
One very common mistake a lot of UK SME’s make is to forget about their tax return until it is actually needed. Whether you do it yourself or use an accountant, do not think you can get it all done the week or two before it is needed. This will just place extra stress on you and leave you open to unforeseen issues causing big problems. Instead, try to maintain your tax records throughout the year so you have them ready when needed.
Not using digital solutions
There are so many easy to use and productive ways to look after your tax online now. From popular software like Xero to online Cloud-based accountants, you should really be looking after your tax return digitally. This is not only easier for you to do but also much more efficient. HMRC has announced plans to make all tax returns digital in the future, so you may as well get ahead of the curve now.
Paying your tax bill late
Once you have got your tax return in and had the bill from HMRC, remember to pay it on time! This sounds very basic but it is still one common mistake many businesses make. Make sure you know when the deadline is for your tax bill to be settled and get it sorted out in advance. While you may feel it makes business sense to leave it as close as possible for cashflow purposes, be sure that you do not cut it too fine.
If you would like help with your SME’s tax return in a modern, different way then call Cornel Accountants today. We operate in the Cloud to bring accountancy and tax returns into the 21st Century. Open, honest and relaxed, we will ensure you get your tax compliance issues in hand.