Can An Accountant Help With My Tax Return?
Business owners are a talented and skilful group. Being able to successfully run a business, keep on top of training and hiring their employees alongside all of the other challenges that owning a business has. But, a complaint that accountants hear all too often is that they struggle when it comes to filing their tax returns. Many business owners aren’t sure which aspects of their tax responsibilities they can handle themselves, and when they’re better off calling in the professionals. This is why we recommend hiring an accountant to help with your tax returns.
A Self Assessment tax return can look daunting. But if you’re prepared with an experienced and organised accountant, they’re a lot simpler than they look. By working with an accountant you are able to file it correctly and avoid paying any penalties.
What is a self-assessment tax return?
Issued by HM Revenue and Customs (HMRC), a self-assessment tax return is a form that collects information on your and your businesses income and capital gains for a particular tax year. HMRC uses the information you provide to check your tax liability for the year and it includes sections where you can give information on any reliefs or allowances you are entitled to, which may reduce your final tax bill.
You will normally have to register with HMRC as self-employed; or if you are a company director to receive a Tax Return. But sometimes you will need to contact HMRC and ask for a tax return. HMRC may occasionally have information that suggests that someone may need to submit a tax return, for example, this could happen if you receive a redundancy payment of over £30,000. In such cases, HMRC may contact you asking you to complete a Tax Return.
Self-assessment tax returns must be completed once a year by either 31 October if you are filing a paper return or 31 January if it is an online return. Tax returns require close attention to detail to ensure that nothing is missed. You must provide accurate dates, figures, and details of any marital or special relief statuses you are eligible for and any misinformation or late returns could result in you receiving penalties. Whatever you declare, you should be prepared to back up your claims with evidence (such as invoices and receipts) if requested by HMRC.
Is a Tax Return different from a VAT Return?
Yes. A tax return is a document that declares your income and capital and your VAT return indicates how much is owed to HMRC or whether you’re due a refund.
VAT is charged and recovered on transactions, both income and expenditure. This is different from your annual tax return which is based upon the declared profits of your business over your accounting year. VAT Returns are submitted to HMRC periodically, using the schedule determined at the point of registration. This can be monthly, quarterly or annually and this is different from the tax paid on the profit of the company.
How can a Tax Return Accountant help?
Tax accountants work with you to produce tax return documents that follow tax laws and regulations. Not only are they experts in tax and the regulations around it but they work with numbers every day, so they’re very good at ensuring all your figures add up and spotting any abnormalities.
A skilled, proactive tax accountant will keep their clients updated on their return information, and work with them before tax time to derive a plan that will help them reach their desired financial goals and outcomes. In addition to that, tax accountants know the rules: what you’re entitled to, and how your liabilities might be reduced.
Stonehouse Accountants, based in Peterborough, has over 30 years of experience in guiding businesses based in the East Midlands with their tax and Inland Revenue self-assessments. We understand how easy it can be for a busy business owner to miss a tax return or self-assessment deadline. This is why we can assure you will not incur any avoidable fines or penalties, while also taking away the stress and strain of having to read the map and navigate yourself through the potentially hazardous self-assessment tax return of Inland Revenue.
Contact us today for more information on Tax Returns and how we can help with yours.