So the saying goes….’tax doesn’t have to be taxing’ but let’s be honest it is a little isn’t it? The Federation of Small Businesses (FSB) offers some advice.
At the FSB we understand dealing with tax is a whole different world to manufacturing where your priorities are focused on product shipment, quality control and production deadlines. Yet get it wrong and the consequences could leave you with a real financial burden!
Tax implications vary for SMEs based on the size of the business and whether it is new or established. Having a conversation with a tax specialist really is a good idea, and to give you an indication of how the FSB can support you below is a nugget-sized overview of top tax tips.
- Make sure you are VAT registered in time
Keeping accounts up-to-date on a monthly basis is a great idea as it enables you to look back across the past 12 months and ensure you haven’t hit the VAT registration threshold of £81,000.
- Make sure you meet revenue deadlines
It’s not just the VAT threshold you need to keep track of, but all the various deadlines for NICs, PAYE and Self-Assessment deadlines – at the FSB we’ll create a list of all the key dates for you to help you keep on top of and more so not miss deadlines.
- Keep thorough business records
Be warned – HMRC investigations can take place at any time even after a business has ceased trading so make sure you save all business documents and receipts for at least six years.
- Have the right paperwork for employees
Whether it’s a part-time worker, casual worker or full-time employee you need to make sure the HMRC is aware of their status and that a record is kept (for six years).
The FSB comes into its own when it comes to tax advice and we certainly can take the heat off you and make tax less taxing. For more information visit www.fsb.org.uk/join or call 0808 1688 486 to chat with one of our team.