VAT Return Tips For Your Business - 10 Ways to Save Money and Time on VAT Returns
1. Pay VAT on time
Avoid penalties by paying VAT on time. If your VAT return is late, HMRC will make you pay a percentage of the unpaid VAT at the due date. You will not be charged the first time this happens but you a warning will be issued. If it occurs again within the following 12 months, an assessment will be made to determine a surcharge of up to 15%.
For companies in the construction business or organizations that spend mostly on construction materials, you are eligible for tax refunds or tax return under the Construction Industry Scheme set by the HM Revenue & Customs in UK. The scheme, commonly known as CIS, sets the rules for contractors and subcontractors in the construction industry and eligibility for any tax refund.
We all see on our receipts a VAT element (or are offered a VAT receipt), for example when you fill your vehicle up with fuel; but if you own your own business, just started, or thinking of starting up a new business, do you understand VAT and whether it is applicable to you and your business? Here I have put together a simple guide explaining what you need to know and how to get started.
Nowadays bookkeeping and accounting is essential part for every industry because of that if you want to keep all the financial transactions records appropriately so bookkeeping or accounting is facilitates to keep all the financial transactions reports for your any size of businesses. Each and every business proprietor wants perfect business financial transactions records like sales, purchases, income, and payments by an individual or organization so if you desire to keep all the records accurately for your small business so bookkeeping accounting is better option.
The world of tax as it applies to you and your small business is an incredibly important one, and yet often more than a little confusing; one of the areas that seems to confuse most is that of VAT (value added tax). Most business owners know that they must register their business for VAT but are a little unclear as to the exact rules. If and/or when one should register for VAT is a common question that many businesses would like a simple answer to.
When people think of accountants, the normal image that comes into their heads is someone sat at a desk behind a pile of paper, completing tax returns. However, while that may have been true in the past, a new age is upon us.
People are no longer looking for the bog-standard accountant; they want one that can help, not only support, but grow their business as well. Here are some reasons why you need an accountant.
There are advantages and disadvantages with starting a business either as a limited company or a sole trader.
Operating as a sole trader gives the advantage of requiring little in terms of administration. You must register as being self-employed with the Inland Revenue within the first three months of trading and you will pay Self Assessment Tax as well as national insurance.
As a sole trader you are personally responsible for any monies owed to government or creditors and hence your personal assets including your home can be at risk.
We often focus at the end of the year on our review of the year that has gone, and consider plans for the New Year and then set goals based on what has been identified. The end of the financial year is also a good time to stop and review. It is worth investing some time reviewing whether you are meeting your planned objectives and goals to date. You don't want to waste the next 6 months just because you could not spare a couple of hours mid year. Therefore take some time to check year-to-date highs, lows, the planned, the unexpected, the wins and the losses.
With the UK in lockdown, as of 23 March 2020, many businesses and self-employed people are concerned about their finances and what the future holds.
The Chancellor has set out a package of temporary measures to support public services, people and businesses through this period of disruption caused by COVID-19.
If you would like to find out more, go to COVID-19: Support for businesses. We realise that at the time of writing that this is an ever-changing situation, which we will be staying on top of.
Please stay safe and positive during this time.
Why even small businesses in Kent should hire a bookkeeper
Getting into a business is not an easy job; it is not even a relaxing thought. It takes an extra special person who would do the mammoth task of managing the entire business/ When the business expands, more so the task of maintaining the financial records becomes demanding. Companies would certainly need help in organising their financial data and that is when they think of outsourcing a bookkeeper. If your business is in the Dartford, Kent area, we have bookkeepers on hand to keep your business on track.