Build A Better Business – Don’t Think The Taxman Is Logical Or Patient
On top of that HMRC makes a lot of mistakes. HMRC themselves in one year admitted that almost 5M people paid the wrong tax under PAYE.
Tax evasion is taken very seriously by HMRC and criminal proceedings usually follow.
The penalty regime in many cases is extremely harsh for late filings and mistakes.
You MUST get your tax affairs in order from day one. If you are a self- employed sole trader you have to register with HMRC, if you are a limited company likewise for corporation tax and payroll.
If your business is above the VAT threshold you also need to register for VAT. You need to maintain records proper financial records enough for the tax authorities.
HMRC will soon have powers to take money directly from your bank which will be based on an estimate. There are many example of HMRC aggressively investigating and this is not a pleasant experience if you are on the receiving end of an investigation. You will not have any defence if you cannot produce the evidence and a proper paper trail.
The tax code is not logical and there are literally thousands of allowances that can be used to reduce your tax bill, but unless you are an expert you cannot possible know them all.
There is good news though and an easy solution. TALK TO YOUR ACCOUNTANT
The key points are:
Talk with your accountant first
Register your business for all necessary taxes
Keep proper financial records and a paper trail
Don’t file things late or you will get a hefty fine
There are many ways to legitimately save tax. We are experts in all areas of taxation and our tax planning service will help you through the maze so you pay as little as possible. Your tax savings could be considerable.
We also ensure our clients are complying with the tax legislation thereby reducing the risk of an enquiry or incurring any fines. We constantly advise and monitor our clients’ compliance and update them on any changes to the tax code.