Managing your money
Liberis’ Guide to Small Business Taxes - Part Two: Tax Tips
Part One: Understanding Your Taxes
Part Two: Tax Tips
1. Use a smart filing system, or try cloud accounting software such as Xero, SageOne, or Quickbooks to store your financial documents and make sure all those important bits of paper don’t go missing! The extra organisation will really pay off when it comes to making your tax return.
2. Know exactly which taxes apply to your small business: Which types of national insurance should you be paying? How much VAT applies to your products? Which business rates are relevant to your business too?
3. Keep a good record of the right documents. These include any evidence that supports an item of business income, deduction or credit shown on your tax return; such as payment receipts, statements of interest from banks and building societies, and dividend vouchers.
4. Meet your deadlines. Note return dates, set up direct debits from your business bank accounts, and stay on top of all pending payments to avoid late penalty charges. Your deadlines are your priority!
5. Consider investing in an accountant so you can focus on developing your business instead. This won’t only save you time and offer your business useful advice, but could potentially save you money in the long run too.
6. If you use an accountant, they might submit your tax payments and forms on your behalf; but make sure to double check they do this as, as the business owner, you are still responsible for ensuring their submission.
7. Claim all the benefits or allowances that your business is entitled to; including corporation tax reliefs and reduced costs on any business rates.
8. If you can, set aside some funds to cover any extra tax liabilities. This could save you a lot of trouble if an unexpected charge comes up!
Check out our full tax guide here!
Liberis do not provide tax, legal or accounting advice. This guide has been created for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. The information included in this guide is based upon existing legislation for the 2017/18 tax year; however, it is not all inclusive, and should not be relied upon as being all inclusive.
Every effort has been taken to compile the contents of this guide as accurately and carefully as possible. However, Liberis cannot accept any responsibility or liability to any person in respect of anything done or omitted to be done in in reliance, partly or wholly, on any part of this guide.
To make smart financial decisions for your business, you should consult your own accounting advisors before engaging in any transactions.