Tax returns when you're self-employed or a small business owner
PUBLISHED: 17:18 31 July 2019 | UPDATED: 12:07 06 August 2019
If you're self-employed or running a small business, filing your tax returns can become something of a chore, and the job you keep putting off. We talk to general manager, Ed Purnell, to find out how Norwich Accountancy Services can help with your tax returns.
Self-employed tax return
No one likes paying more than they need to. When you're self-employed you pay tax on your profits, rather than your income. Therefore it's important to deduct the daily costs of doing business from your taxable income.
If you're newly self-employed you may be wondering how much you can earn before you have to pay tax. You're entitled to the same amount of tax-free personal allowance as you would if you were employed, which is £12,500 for the 2019/20 tax year. Tax returns for individuals need to be filed by 31 January each year and there is a £100 fee for late submission.
Filling in tax forms can be overwhelming. "At Norwich Accountancy Services we are experts in tax returns. We will save you the job of form-filling and the compliance aspect of self assessment. We aim to make the process as stress-free as possible", Ed told us.
Norwich Accountancy Services will make sure you're not paying more tax than needed. Ed said: "We work hard to ensure that you don't pay any more tax than you legally have to, treating your returns as if they were our own."
Small business tax return
Managing your accounts and tax for a small business may seem easy at first, but it can become time-consuming and mundane. Like all small business owners who are keen to save money, you may think that having an accountant is too expensive. However, its worth taking into consideration the amount of time you're spending getting your head around tax forms, and whether that time could be spent focusing on increasing your revenue instead. Ed said: "We can file your tax return for you, freeing up your most important asset, your time."
Something to be aware of is that there is a £100 fine for a late submission of your tax return, after three months this doubles, and after six months HMRC will estimate your corporation tax bill and add a penalty of 10% of unpaid tax. Ed added: "Our tax return service makes perfect financial sense, especially as our fees are a tax deductible expense for businesses and landlords. Filing tax returns can be a recurring headache because it needs to be done every year. Penalties have increased over the years, so it's more important than ever to make sure deadlines are met."
Aside from filing your tax returns, there are various services Norwich Accountancy Services can do for you, such as set up workplace pensions and manage your payroll.
If you employ one or more people, you need to offer a pension scheme. As an employer, you are limited in the type of pension scheme you can offer. There are two types, defined benefit and defined contribution. Norwich Accountancy Services can help you set up a workplace pension for your staff.
When you start a business and it grows to a point where you're thinking about taking on employees, it's time to consider payroll. Having your payroll managed efficiently is important because it will ensure your employees are paid the correct amount at the right time, and will also make accurate deductions for tax and pensions.
Ed said: "We're a one-stop shop. We can help you get your business underway, and continue to do so as it grows and develops. If you want to start your own business but haven't made the leap yet, we can help. If you're up and running, but need assistance with your accounts, capital allowances, registering for VAT, workplace pensions, payroll or even just general business advice, we're here to help."
"We're pink and green…because tax isn't black and white" - Norwich Accountancy Services.
Norwich Accountancy Services offer a free, 30 minute consultation without obligation. If you're an entrepreneur or business owner, and want to get help with your tax returns and other financial aspects of your business, email firstname.lastname@example.org or call 01603 630882.