Accountants For Your Business Tax Returns
Corporation tax is payable by limited companies which make a taxable profit. The tax is due 9 months and 1 day after the year end.
Every business transaction has a tax implication and getting the strategy and the tactics right is integral to your business success. Like all other expenditure it should be managed and reduced where possible. There are opportunities for a business to reduce its tax spend. The first of these include ensuring returns and payments are made on time.
As a sole trader, you are running your own business as an individual. This is known as being self-employed. You can keep all your business’ profits after you have paid tax on them.
You are responsible for:
- your business debts
- bills for anything you buy for your business, like stock or equipment
- keeping records of your business’ sales and expenses
- submitting a Self-Assessment Tax Return every year including the self-employment pages
- paying Income Tax on the profits your business makes and Class 2 and Class 4 National Insurance.
In a business partnership, you’re running a business as a self-employed individual but all the partners share responsibility for the business.
You can share all the profits between the partners and each partner pays tax on their share of the profits.
Both the nominated partner and individual partners are responsible for:
- sending their personal Self-Assessment tax return every year
- paying their Income Tax on their share of the partnership’s profits
- paying their National Insurance
- any losses the business makes
- costs for the business
The nominated partner must also send the partnership’s tax return.
We can assist you in fulfilling these requirements, please contact us.
Limited Liability Partnerships
A Limited Liability Partnership (LLP) is a legal body corporate on its own just like a limited company. The main benefit of trading as LLP are that partners are not personally liable for their business debt provided they are not negligent. Partners’ personal liability are limited to the amounts of capital contributed to the LLP.
Partners’ personal assets are safe if the business fails in this respect. This is contrary to normal partnership rules.
For income tax purposes, partners in an LLP will be taxed as if they are in an ordinary partnership.
As an LLP Member you are responsible for:
- Keeping records of your business’ sales and expenses
- Sending a Self-Assessment every year
- Paying Income Tax on the profits your business makes and National Insurance.
How our professional business tax accountants can help
We can save you time
As a company owner, your priority will be to generate business and fulfil the work you have won. Having to perform extra paperwork and keeping aware of income and expenditure on a constant basis is time-consuming and will take time away from the task at hand. By employing an accountant (who will be aware of the latest tax laws, regulations, rules and deadlines), will save all that time and effort, freeing you up to concentrate on making your business a success.
We can potentially reduce your tax liability
Any good accountant will know how to save money and be able to give you solid advice on employing the most tax-efficient way of running your company. Business tax law is especially complex and thus, many of the government schemes may go unnoticed by those not versed in business tax returns.
A good example of this is the flat rate VAT scheme (FPS) which is a UK government incentive that allows you to charge VAT on invoices at the standard rate but pay back HMRC at a lower percentage. Essentially, you’ll be paying a fixed rate of VAT, while keeping the difference that you charge your customers.
We can prevent you receiving hefty tax penalties and fines
Ensuring that your tax affairs are up-to-date and correct is absolutely critical. Any late submission of paperwork will result in penalties and fines, while incorrect business tax returns will warrant investigation by HMRC. Hiring an experienced professional business accountant to manage your returns will prevent this from ever occurring – removing any lingering tax worries you may have had.
Good accountants that can help grow your business
Every good accountant will be a great source of advice as you look to develop and grow your business. Each of our clients will be typically allocated their own dedicated accountant, so from the first day, you will work with someone that will take the time to understand your business and take great pride in seeing it succeed.
Sound good? Why not get in touch with our chartered accountants today?
Please feel free to browse our website to learn more about our work as chartered accountants – if you have any questions about our business tax returns services, we would be pleased to answer them.
You can call us on 0118 979 9744 or send an
e-mail to firstname.lastname@example.org and we’ll get in touch as soon as possible.