Setting up and running your own business is a very rewarding experience, though it’s certainly not without its pitfalls. In fact, there are many aspects of your business which you may grow to hate, dealing with tax is likely among them. In order for you to quickly get to grips with it all, we have compiled a handy collection of tips for you to bear in mind when moving forward with your operation.
1 – On Time Every Time
Always make sure that you submit all your tax returns, accounts and other relevant paperwork accurately and within good time. If you fail to do this, you can incur penalty charges which will ultimately cause you more stress than you need. If you decide to hire an accountant to help you with this (which is recommended), remember that you are responsible for supplying them with everything that they need.
2 – Be Accurate
Leave no margin for error when it comes to handling your tax. Keep accurate records and store all of your receipts and invoices in a safe place and be sure to keep digital copies of everything if possible. The more information you have, the better – just endeavour to use a straightforward filing system to keep everything in order so that its easy to access and navigate.
3 – Try Using Accounting Software
Leading on from tip #3, there are many online tools which can help you out and will ultimately save you hours of time. You can access your records at any time and you’ll invariably make your accountant’s job much easier.
4 – Claiming
Make sure you take full advantage of everything that you and your business is entitled to. This could be anything from claiming help with your business rates to capital expenditure. There are systems in place to support you, so use them.
5 – Home Run Businesses & Claiming
When it comes to making claims, make sure that if you’re running your business from home that you claim expenses for a portion of your mortgage/rent and bills – If your home is your office, you will be entitled to do so.
6 – Claiming for Setup Fees
Another one that people often forget, is that you can claim for the costs incurred when setting up your own business. Things like equipment, materials, vehicles etc. Every little helps.
7 – Always Declare Dividends from Profits
There are hefty penalties which can be incurred if you don’t play by the rules. It’s a minefield of course, so if you need help and advice, you know where to find us. It is important that you are fully aware of every aspect of running a business, particularly when it comes to finances.
8 – Set Aside Disposable Funds
You may never have to worry about this, but it’s always worth setting money aside in case of future tax liabilities. There’s nothing worse than being charged more than you were prepared for and having to dip into your own personal account to make the balance.
9 – Hire an Accountant!
Some people are fortunate enough to be able to deal with numbers naturally (most of them end up becoming accountants) – Understand that you must play to your strengths and accept help where necessary. If you hire the help of an accountant, not only will they likely save you money in the future, but they can offer sound advice when moving forward with your business, and you can dedicate more of your time to growing your business.