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One thing we all need to manage correctly is our taxes. With that in mind, read on to discover some of the New Tax Year resolutions you should consider implementing at your business this year.
Keep everything up-to-date – You make your life so much more difficult if you do not keep track of all your finances efficiently. You will undoubtedly end up making errors, especially if you leave everything to the last minute.
Input the correct amount for pension contributions – Aside from forgetting about pension contributions altogether, the most common mistake is inputting the wrong amount. Business owners often pay their pensions on a net basic rate. Make sure you know the difference between the net spend and gross spend.
Don’t forget to include some employment benefits – This is a common mistake made by a lot of small businesses. A lot of companies remember the obvious, such as medical insurance and company cars.
However, it’s the smaller perks, such as gym membership, that are often overlooked. Needless to say, these all add up so make sure you include everything.
Make an effort to stop blurring the lines between personal and business – A lot of start-up founders experience this issue if they do not set up a business bank account. Head to https://www.business.natwest.com/business/business-banking/business-bank-accounts/startup-bank-account.html for more information. If you are using the same account for both business and personal use you can easily find yourself getting confused about your finances.
Commit to filing the tax returns on time – A lack of organisation can often lead to the tax return being filed late. If this occurs, you will be charged a penalty of £100. If the tax return is more than three-months late you will then be subject to further charges.
Include charitable donations – When filling in your tax return you need to include any Gift Aid contributions you have made. You will get a tax refund for this, which is significant if you are a higher rate taxpayer.
Don’t leave out capital losses – A lot of people fail to include capital losses in their tax return, as they believe it is not necessary because they won’t be paying any tax on a loss. However, you can carry capital losses forward, which can lead to further tax savings in the future.
Hire an accountant – This is the best way to keep on top of your taxes. You can have the peace of mind that everything is in the hands of an experienced professional.
They can also make sure you have all of the insurance policies in place to protect your business, such as mykeymaninsurance.com. When looking for an accountant, you should take the time to read reviews so that you end up with the right professional for you.
So there you have it: some important tax resolutions for the coming year. Follow the tips above and you cannot go wrong.
Tax Resolutions For The New Year