Unlike large corporations, small business owners do not have the luxury of managing taxation with an internal accountant. However, this does not exclude the need to become a professional who can help small and medium businesses understand the taxation system of Great Britain. Many services are online in London, Leeds, Manchester, Bristol, Birmingham, Glasgow, and Belfast among other cities in the UK for accounting services. They make accounting tasks easy.
Earlier Tax Preparation – In this case, your accountant can give you tax planning advice throughout the year. With proper tax planning strategies, you can legitimately reduce the amount of tax you pay. You need to use the services of a tax consultant every quarter to get the results you want.
Preparing for the return of tax – in addition to providing tax advice – tax professionals will help you identify business and personal tax returns in a timely and accurate manner. Applying business and individual tax returns will help the accountant to align their tax collections better.
These are steps to fulfill before hiring a professional accountant:
- Registration with the HMRC to pay corporate taxes within three months of doing the business is a must. Marketing in this context encompasses any purchase, sale, advertisement, rental of property, and location of someone. You may be fined if you do not register in the first three months.
- No matter where your company is in the UK, you will pay a corporate tax of 18% on any profit you receive in 2019/20. This may seem like a large part of your income to a taxpayer, but the UK corporate tax rate is the lowest in a developed world and drops to 15% in April 2020.
Before registering corporate tax, you will need a unique 10-digit taxpayer’s code from your company for corporation tax, which will be located at the company address you provided at the Companies House.
To get the registration of HRMC corporate tax:
- Registration number of company
- Date of doing business
- Time of annual accounts are made
You get the deadline for corporation tax payments. You should know that you need to file your tax return even you did not make any profit or loss.
Small businesses can use the Research and Development Scheme (R&D), which will allow for a 240% reduction in research costs.
This allows you to deduct 160% of the annual profit from the qualifying expenses of your business over a standard 100% deduction.
In some instances, loss companies may reimburse their expenses for tax credits of up to 14.5%, paying instead of 19% corporate tax.
The patent box allows the joint ventures to reduce the corporate tax rate from 19% to 10% on any qualification patent or similar intellectual property.
Capital repayments may be required for any item of equipment, machinery, or vehicle used by your company or any employees in the company. There are many benefits and discounts available to help the corporation reduce its tax reporting, and we can help your company find which one to use.
Payments and Reporting
As the director of a limited company, you need to keep a clear corporate tax filing report. For this reason, it is worth considering the cloud accounting software. We name a software called XERO. Not only does this help you meet your requirements, but reducing our tax returns simplifies our work.
Make sure you keep track of all receipts, expenses, sales, and purchases, as well as any assets, liabilities, and shares of the company if your company sells goods.
These records must be maintained within six years of the related tax year. One of the organized options is to keep them in your accounting package like Xero. With a taxable income of up to £ 1.7 million, you pay the corporation’s tax return for nine months and one day after the reporting period. Anything that goes beyond this limit and you pay the corporation tax. You need to pay corporate fee early to avoid any penalty and interest rate increases, and the fastest ways to pay are to pay online, over the phone, or via CHAPS.
I am sure this post will be helpful for everyone. But if you are looking for the Accountants in London for accounting services then ProAccountax available to take care all of your accounting related tasks. Just given them a chance and then see the results.