Four Benefits Of Voluntary VAT Registration For Small Businesses
Businesses within the UK are required by law to complete VAT registration with HM Revenue & Customs (HMRC) if their annual turnover is above the £85,000 threshold. If a small business doesn't earn above the £85,000 threshold, then it doesn't need to register for VAT. However, many small businesses getting contractor accounts performed by a good tax return accountant will often be advised to voluntarily register.
There are a variety of benefits behind why these small business owners are being advised by their accountants Sussex way to register for VAT. The first benefit for doing so is perhaps the most obvious one. Registering for VAT is a pre-emptive measure against avoiding any financial penalties. If, for some reason, your turnover spikes above the £85,000 VAT Registration Threshold and you don't notice, you will likely be receiving a letter from HMRC. If you go over the threshold, you have 30 days to register VAT with HMRC. If you don't do this, you will receive a penalty. It doesn't matter if you did so unwittingly; the rules are clear. So by registering, you are stopping this situation from arising. The second benefit relates to the possibility of receiving VAT refunds. If you are buying a standard rate VAT product or products for your business, then you'll be able to claim for VAT refunds. This is even the case if you are selling a zero rated VAT product. So these are just a couple of the direct ways in which a UK contractor accountant can help small businesses when it comes to voluntary VAT registration.
However, there are also a number of other benefits that many small business owners may not think of due to not having as much experience with matters relating to VAT. However, this is exactly why contractor accountant recommendations are so important to small businesses that don't have financial advisors on their staff. One benefit relates to the boost that a business can receive to its profile by being VAT registered. By voluntary registering for VAT, you could give the impression to any potential clients that your business is bigger than it is. This can be an important tool in your arsenal against those bigger companies within your industry who tend to sweep up your potential client base. By being VAT registered, you will receive a VAT registration number which you can place on your website, lettered or email correspondence, and on any stationary or advertising material. Following on from this, another benefit relates to the fact that there are many businesses out there that just won't deal with smaller businesses that haven't been VAT registered. Again, your VAT number demonstrates that you have been VAT registered via your contractor accounts manager.
So these are just some of the benefits that your business will receive from voluntary VAT registration via an advisor who can also perform contractor accounts. Just as it's important to receive tax return help, it's also important to receive help from chartered tax advisers and accountants when it comes to VAT registration.
How Can Accountants Help You Survive A Tax Investigation?
Being notified that you or your business is under investigation from the taxman can be one of the most stressful moments of your life. This can be especially amplified if you feel you have done nothing wrong. Anger, frustration and disbelief can take over. But it’s important to buckle down, stay calm and get in touch with a good tax return accountant and accountants Chichester wide with speciality in handling tax investigations.
It’s important to take the right steps to get through this investigation. First of all, as we alluded to above, remain calm. Don’t call HMRC in anger and complain straight away as it is highly unlikely that it will change anything and won’t make you feel any better. Instead, find the right accountants Chichester way with experience in dealing with tax investigations. But before you even do that, there are steps that you can take to help your position. First of all, don’t get rid of any documentation. It looks bad. If you haven’t been keeping a full record of your financial accounts, seek replacement documentation such as bank statements. If there are any gaps, this is where your Chichester accountant can help. While we did say that you shouldn’t phone up HMRC in anger, you should eventually call them to seek any sort of clarification on what issue the taxman has with your accounts. While it is easy to have the perception that the tax inspector is out to get you, their own HMRC guidelines state that they should co-operate with all sides to resolve any issue in a “non-adversarial” way. So the taxman doesn’t want to bury small businesses, they want to resolve the issue in a manner that is positive for everyone.
During this clarification with HMRC, it’s important to work out what type of investigation your business is receiving. This generally falls into three categories: full, aspect and a random investigation. A full enquiry will look at your whole tax return and an aspect investigation is where it is one or more parts of your tax info is being re-assessed. But a random enquiry is a full investigation that relates more to the industry and area that your business is within and has been deemed higher risk. It is often small-to-medium sized businesses that will receive such investigations. All of these investigations should be treated seriously. So irrespective of what is being investigated, you need to ensure you have tax return help in place. This is because without having Chichester accountants in place, you are fighting an uphill battle. HMRC know tax inside-out. If you are planning to try and take this on alone, be aware that you are taking on a system with decades of experience and a committed workforce. If you have little to no experience in tax issues, you have a very slim chance of succeeding in overcoming this investigation.
So you need someone with experience in tax issues; you need accountants Chichester way to help you get through this investigation. So make sure to find contractor accounts specialists with experience in helping small and medium sized businesses successfully fight tax investigations.
Why Your Sussex Based Small Business Needs Accountants Sussex Based
Being a small business owner has never been easy, and recently it has become even more difficult for some. One aspect that takes up much of the small business owners’ time is keeping on top of the finances. After all, just because you are great at your business, does not mean you are a wiz with the accounts. This is just one reason why you should consider accountants Sussex based, sooner rather than later.
One of the reasons to consider a local tax return accountant is for advice in writing your business plan. Using their knowledge and skills, as well as accounting software, they can add financial projects to your report; aiding in creating a plan that is professional, realistic and has a greater chance of succeeding. The right accountants Chichester based will also be able to provide advice on the best legal structure for your business. Different structures affect the finances of your company in different ways, so expert advice is always best. If you have been managing your own business accounts during the early days of your business, you will soon find that the complexity levels grow. Once this happens so will your stress levels if you do not source the correct tax return help. Delegation is important, not just for your sanity, but also the health and future of your business. If you delegate jobs like your accounts to a professional, you can focus on the important job of growing your business. One of the reasons why this is an important aspect of your business to delegate is because of the regulatory and tax paperwork that is required by the government, and which is subject to change.
As well as keeping up with current paperwork, there is always the possibility of an audit to consider. If your business is growing, once it reaches a certain turnover, there is the possibility of an audit. Audits are time-consuming, expensive and very stressful, particularly without the appropriate support from accountants Sussex based. An accountant will be able to provide detailed advice on the auditing process and ensure that you comply with all necessary tax laws, making the audit go as smoothly as possible. Tax accountants in Eastbourne can also help when it comes to further growth or development in your business. If you are looking to source financing to support this growth, then an accountant will be central to convincing a lender that you are a good business to lend money to. If you are thinking of expanding through a franchise or buying a new business, then accountants in Worthing, or further afield in Sussex and beyond, are going to be essential. They will advise on the potential costs and shortfalls of the new business, as well as any new tax implications that you need to consider.
A tax accountant is also a useful person to have to hand when you are considering selling your business, or passing it on as part of an inheritance. After all, you don’t want your gift to cause problems when it comes to inheritance tax liability for your family. The only thing you need to do now, is source the best possible accountants Sussex based for your local small business.
Why You Need Specialist Tax Return Help
The dreaded tax return, it is a thorn in the side of every self-employed person and business owner all over the UK. It also affects those who are no longer business owners, and even those with redundancies over a certain amount. This list alone should be enough to make you decide to look for specialist tax return help. But, if you are still convinced you can do it yourself, read on.
The first thing you need to know is whether you need to file a tax return. The answer is if you have any financial income, which is taxable and not taxed as PAYE, the chances are, you do need to file a tax return and would benefit from tax return help. Making a mistake and not filing a tax return when you need to could lead to a sizable fine, so it is always better to check, either directly with the HMRC, or with a tax return accountant. Once you know whether you need to fill in a tax return, the next issue is getting it done by the deadline. Missing, forgetting or not knowing the deadlines for paper and online returns are not excuses as far as the HMRC are concerned and missing the deadline results in a fine. If you leave your return in the capable hands of a tax return preparer, you know that it will be filed on time and you can save yourself the worry. This is important when you consider that the fines for late returns, even if you don’t owe any tax start at £100.
But, surely you are thinking, filling in the tax return itself must be easier enough. Well, if you are a self-employed, sole business owner with no premises, no savings, no staff, are not a company director and have no foreign income, then yes, it is reasonably straight forward. But, there are still a lot of different elements to filling in the form, and a simple mistake at any point could cost you a fortune in tax that you needn’t have paid. The first section on your personal circumstances is the easiest part, and if any of this leaves you confused, then you really need to consider an expert accountant for tax return advice and support. However, even if you do understand the ins and outs of the tax return, using a contractor accounts expert could still save you money in the long term. This is because, while you may be an expert in your areas, it is unlikely that you are an expert on the minute of the current tax laws at any time. Knowing the intricate details, in the way that accountants Sussex and beyond do, can be the difference in the percentage of tax you are required to pay. This could be down to something as simple as knowing which expenses you can claim tax relief on.
At first glance paying for tax return help may seem an expense that you cannot afford. However, once you consider the details, you can see that it really is an essential that you cannot afford to be without. Getting expert advice and support in filing your tax return could increase the likelihood of your business being successful in the long term.
The Benefits Of Hiring A Tax Return Accountant
Hiring a tax return accountant may seem like an unnecessary expense, but there are many benefits associated with doing so. In this post, we are going to take a look at them in further detail, so you can see the true value that such an accountant can bring to your business.
One of the main reasons why you should consider hiring tax return specialists to assist with your tax return is because they will ensure that it is filed on time. Tax return accountants can save you a huge amount of time. They enable you to focus on the core of your business while they take care of the financial admin for you. This is more important than you may realise, as HMRC have hefty fines in place for anyone that does not submit their tax return by the deadline. And, missing the deadline is easily done when you have plenty of other things to attend to. This is why it is best left in the hands of the experts. They will also ensure that your tax return is filled out accurately and that everything is handled above board. Any missed information or inaccuracies on your tax return can lead to large penalties from HMRC, especially if they feel you have done them deliberately. Don’t leave anything to chance and seek professional tax return help instead.
Perhaps the main reason to use a tax return accountant is because they can save you money. This may seem ironic. After all, you are paying for a service that you could technically do yourself. However, the value that a tax return accountant brings means that they will soon by paying for themselves. How? Well, there are numerous ways. Firstly, we go back to the fact that accountants Sussex wide save you time. Time equates to money in the business world. You will be able to spend more time focusing on what makes your business profit, instead of spending hours stressing over your tax return. This is especially important for small businesses. Aside from this, your accountant will be able to alert you to any tax breaks you are not taking advantage of. These are legal ways for you to reduce the amount of money you pay on your tax bill. For example, your business could be entitled to R&D tax credits, yet you may not be claiming for them. Furthermore, you could have numerous business expenses that are tax deductible, but, yet again, you may not be aware of this, and so you could be paying a lot more tax than you actually need to.
As you can see, there are many benefits associated with hiring a tax return accountant. However, you do need to choose with care if you are to encounter all of the plus points mentioned above. Select someone with the necessary experience and a good reputation.
Tax update – AMG Financial Chartered Tax Advisers & Accountants have recently helped a local individual with regards to applying for VAT registration.
The individual located in Selsey, Chichester did not realise that the VAT threshold is worked out on a rolling twelve-month basis. This means that the turnover must be assessed each and every month for the previous 12 months and if turnover exceeds 83k then a business must register for VAT 30 days from the end of the month when turnover exceeds 83k.
The client was unaware that their turnover had exceeded the 83k threshold and, as a result, they were required to register for VAT. The individual was looking for an Accountant in Selsey and we were more than happy to help. We assessed the individual’s turnover for the prior 12 months free of charge and submitted all the relevant registration documents to HMRC.
Failure to comply with this could have resulted in ‘failure to notify’ penalties being issued. HMRC would have also insisted that any VAT due from the date of registration would have had to have been paid by the client, which could have resulted in thousands of pounds.
Please contact us today if you have concerns regarding VAT and we would be happy to help.
Tax Update - AMG Financial Chartered Tax Advisers & Accountants have recently helped a local individual located in Chichester regarding a tax reclaim. The individual was looking for a Chichester Accountant so we were more than happy to help! The individual who was employed at a local car garage was surprised to learn they were eligible for a tax rebate as they were required to supply their own tools for their employment.
The process was very easy, the individual had to supply limited information along with their purchase history from various tool suppliers. They were also pleasantly surprised to find out that they could also claim a fixed rate deduction for the cleaning of work uniform.
The process was very quick and easy and better yet, the individual knew that we were working on a NO WIN, NO FEE basis. Therefore, in the unlikely event that no rebate was due, no fees would have been payable.
AMG Financial Chartered Tax Advisers & Accountants managed to help the individual reclaim thousands of pounds in tax, which the client had no idea that they were entitled to.
With many areas of Tax, it is the responsibility of the tax payer to submit a claim for job related expenses.
Please contact us, a firm of Accountants in Chichester, who would be more than happy to help!
Let Property Campaign
Tax Update - AMG Financial Chartered Tax Advisers & Accountants have recently helped a local individual regarding a Let Property Disclosure. The client located in Selsey did not realise that they had an obligation to report rental income to HMRC. The client was looking for an accountant in Selsey and we were more than happy to help. We made a disclosure on behalf of the client to bring their tax affairs up to date. The client can rest assured that the disclosure means they have saved thousands of pounds in penalties due to the disclosure facility.
The Let Property Campaign allows a tax payer to make a disclosure to HMRC regarding undeclared or incorrectly declared rental property income. The facility is likely to reduce the potential penalties that HMRC can charge a tax payer.
Please contact us if you have undeclared rental property and we would be happy to discuss your options
Businesses within the UK are required by law to complete VAT registration with HM Revenue & Customs (HMRC) if their annual turnover is above the £85,000 threshold. If a small business doesn't earn above the £85,000 threshold, then it doesn't need to register for VAT. However, many small businesses getting contractor accounts performed by a good tax return accountant will often be advised to voluntarily register. There are...
Being notified that you or your business is under investigation from the taxman can be one of the most stressful moments of your life. This can be especially amplified if you feel you have done nothing wrong. Anger, frustration and disbelief can take over. But it’s important to buckle down, stay calm and get in touch with a good tax return accountant and accountants Chichester wide...
Being a small business owner has never been easy, and recently it has become even more difficult for some. One aspect that takes up much of the small business owners’ time is keeping on top of the finances. After all, just because you are great at your business, does not mean you are a wiz with the accounts. This is just one reason why you should consider accountants Sussex based, sooner rather than...
The dreaded tax return, it is a thorn in the side of every self-employed person and business owner all over the UK. It also affects those who are no longer business owners, and even those with redundancies over a certain amount. This list alone should be enough to make you decide to look for specialist tax return help. But, if you are still convinced you can do it yourself, read on. The first thing...
Hiring a tax return accountant may seem like an unnecessary expense, but there are many benefits associated with doing so. In this post, we are going to take a look at them in further detail, so you can see the true value that such an accountant can bring to your business. One of the main reasons why you should consider hiring tax return specialists to assist with your tax return is because they will...