By law, all businesses and individuals are required to keep adequate records of their financial transactions to enable them to prepare an accurate tax return based on their records. The length of time you must keep the records for varies depending on what type of entity you report under.
Tax return preparation and filing can be a daunting task if you’re not used to doing these.
At New Balance Bookkeeping we can take this stressful task from you and help you meet your obligations for tax returns under the following tax headings. With timely reminders and professional expertise in preparing the returns we can help you to avoid costly penalties and fines that are a probability for late filing of returns.
All businesses must submit a Full Payment Submission (FPS) to HMRC on or before each pay day. To do this the business must have an online payroll product in place that allows them to do so. To produce payroll for your employees you must have knowledge of the most up to date legislation for paying employees which takes into account the following main and other considerations :
- Tax codes
- National Insurance contributions
- Statutory Sick/Maternity
- Student Loan Contributions
- Pension schemes
- Auto Enrolment Work Based Pension
- Tax credits
The rates and scales for all these elements can change annually and it is important to keep up to date with the changes to ensure that your returns are correct. Failure to submit correct returns can result in an overpayment of tax by you to HMRC or an underpayment which you will be required to finance and may also be subject to penalties.
The VAT system is extremely complex and various products and services are subject to different rates of VAT.
You can only charge VAT if your business is registered for VAT with HMRC. This in itself can be a big decision to make and there are various options available to small businesses for consideration.
VAT returns are generally made bi-monthly to HMRC with the balancing amount between VAT charged on sales or services provided to customers and VAT paid to suppliers being either payable or claimable on each return. Failure to submit your return correctly or on time can result in your business being ear-marked for a VAT Inspection. This is not something you want for your business as it costs you precious time especially if you have quite a bit to sort out and rectify prior to the inspection. Don’t let this happen to you… contact us now and let us take the stress of VAT filing from you.
Construction Industry Scheme (CIS)
Whether you are a Construction Industry Scheme Contractor or Sub-contractor you will need to ensure that you are being compliant under the scheme and that any contract that you are involved in has been duly notified to HMRC under the terms of the scheme. Payments under the scheme are made monthly using FPS similar to PAYE and an Employer Payment Summary (EPS) is also due monthly.
This is HMRCs method of collecting tax on income that has not been declared under other tax headings. Common types of income that would be assessed under the Self-Assessment method would include :
- Rental Income
- Income from dividends
- Income from bank or building society interest
- Benefit in Kind items that haven’t been included in PAYE calculations
- Income from Self Employment including CIS scheme payments
- Capital Gains Tax