Accountancy Firm Luton: Basic Guide for Filing Small Business Tax Returns in Luton, UK
One thing that newly employed accountancy firm Luton that deal with personal and business taxes are faced with at their first arrival to work is clients asking, “How do I do the filing of my small business taxes?”
The truth is that it is much easier to file taxes for small businesses than it is for larger corporations here in Luton, UK. Not neglecting the paperwork, you still have to be prepared ahead of the deadline.
It is very essential for an accountancy firm in Luton, UK to learn how to efficiently file a small business tax return in order to upscale to filing for larger corporations when your business grows over time.
You will agree with me that it is not easy to own a small business at this time of the year.
Stress levels can rise daily as many struggle for revenue and learn how to get more clients with hopes that they don’t leave any money on the table or miss out on important tax deadlines at the same time.
In today’s article will give you tips on preparing to find an accountant in Luton, or accountancy firm Luton.
Here is a proper step to step guide for filing business tax returns for your own business, quick and easy!
The first step to a successful filing of business tax returns is:
Here is why most other accountants fail to help you before the deadline…
Before filing any tax return for any business, you and your accountant must first prepare.
This means that you must first gather all of the documents and bank records required.
This will help you fill out the tax return form properly and claim back your tax deductions in the right boxes.
Why bother to prepare?
Preparation before filing will help you with your accountant in Luton for the following:
-Get a higher refund
-Avoid errors that may lead to audit triggers
-Know your relevant forms
This is another very important step that must be carried out for a very effective filing of small business tax returns.
Every business in Luton, UK pay taxes to the government and also sends reports of its business earnings to the VAT department when necessary.
But not all business structures have the same exact forms.
Therefore, the form in which you and your accountant files for taxes depends on your unique business structure.
Check the strucutre, type of work and turnover levels to see which form you will use for filing and paying your business taxes.
Note that HMRC provides helpful table that helps break down the necessary tax forms for each type of business.
Classify Office Equipment Properly
Equipment, also known as capital expenditures, are items that are of high-value that will last significantly longer than one year.
Equipment like computers, software, office furniture, servers, etc, can be categorised as office equipment.
With the Section 179 deduction, a client is entitled to write off the entire cost of new equipment in one year, rather than taking depreciation over multiple years.
So your accountant will have to add up any computers, software, and other equipment in which your business purchased in that year (2018) in order to get a greater deduction for 2018; and it is also important to make sure to report these purchases on Form 4562.
Deduct Insurance Costs
Insurance premiums that may relate to liabilities, malpractice, property, workers’ comp and other property are typically deductible as business expenses.
Commercial vehicle and life insurance premiums may also be deductible, but this varies by business type.
Monitor your Client’s Travel and Leisure Expenses
Did running your small business involve driving to meet with colleagues or going to your customers’ locations?
Or did you need to fly out to an industry training day, tradeshow or seminar?
If so, your accountant may be able to deduct some of these expenses relating to your business.
Add Up Minor Deductions
Your accountant in Luton,should keep track of any miscellaneous expenses of your client as these can really add up over the course of a year.
For example, did you buy any books or take an online course to improve on your skills?
Did you pay dues to another organization or monthly subscriptions?
These can all be write-offs after careful checking.
Likewise, any interest on credit used to finance business purchases is fully deductible.
Other minor deductions that you, or your accountant, must watch out when filing a small business tax return for your corporation tax include:
-Money spent on web hosting
-Mobile phone plans
-Printer inks, etc
-Tech for your business vehicles
Using the above technique, your accountant in Luton, or accountancy firm in Luton, UK will help your business to file the business tax returns more efficiently and proficiently.
It is also good to note that your tax expert, or accountant, must understand that your success must be your major priority.
Getting the job done accurately and also as fast as possible should be your goal so that you can focus on growing your business and increasing the income instead of having to deal with paperwork over weeks and months.
Claiming Tax Refunds
A tax refund can help boost your personal income for the year, so it is the duty of your accountant to help you claim back any tax refunds that you are due or prepare a tax penalty appeal.
Getting a tax refund can be a good way to cap off your tax year. It could be worth thousands of pounds, which gives your client’s business a lot of investment opportunity and options.
However, don’t depend on tax refunds. It is better to be more pro-active and work on increasing your income streams.
So how do you maximise your business tax claims with your accountant in Luton, UK?
You can look into the following areas early in the tax year:
– Pay off your business debts
– Plan for retirement
– Reward your staff
– Put money aside for the next year’s tax bill
– Make a community or charity donation
Paying taxes is an absolute certainty for every business in Luton, UK. However, getting a tax refund is not a guarantee.
Find the best accountancy firm Luton to help you with your business tax return and investment opportunity and ask how they can serve your business long-term.
Start a conversation on our Live Chat to learn more about the best tax packages available for your personal tax, or business tax today.