If you’re working for yourself, every cent counts, from the cash coming in to the money that goes out. Monitoring everything is a task by itself, but it’s easy to think of the accountant as an additional expense. There are many reasons to spend that more to hire an experienced accountant could aid in the growth of your business. Here are the top five advantages that a Coventry accountant can provide to your company.
- It could save you time.
When you begin working on your own, whether it’s as a contractor, limited business owner, a consultant or freelancer the goal is to build a revenue and to fulfill the task you’ve won.
The process of completing the paperwork, keep track of your expenditure and what’s coming in is time-consuming and can even take away time from the job at the present.
Engaging an accountant who is knowledgeable of the most current tax regulations, laws, and deadlines, and one who fully comprehends the is the proper format HM Revenue and Customs requires to receive all information, will make it easier to save hours of searching the website of HMRC, allowing you with the time to work more effectively.
- Reduce your tax obligation
A good accountant will know the best ways to save you money as well as give you sound advice on the most tax-efficient method of managing your company.
Understanding the most efficient method to run your business regardless of whether you are self-employed or as an LLC (external link) and the most tax-efficient method to withdraw money of your business is something they will advise you through according to your specific circumstance and needs.
They will also go through the process of paying yourself dividends, knowing the rules regarding what you can and cannot be claiming through company expenses and the advantages of the VAT flat rate scheme.
Flat rate VAT (FRS) is a government incentive that permits customers to add VAT onto invoices for the regular rate (20 percent in 2014) however pay HMRC back with lower percentage. For instance, if work as an IT consultant, and have very low VAT-related expenses, you will only have to pay 14.5 percent back to HMRC under an annual basis under the VAT flat rate scheme and save the remainder as profit.
A professional accountant will provide you with the most accurate guidance on if the FRS will be a good fit and improve your business.
- Stop yourself from receiving costly tax fines and penalties
One of the main factors when it comes to finances and working from home is keeping track of paperwork and staying clear of penalties for late payments. For certain people, this is a part of their work they enjoy and are content to stay up-to-date with. For others, hiring an accountant is logical so that they don’t have to worry about the looming deadlines, stay up to date with current legislation, and also ensures they don’t fail to meet the tax deadline.
Be aware of tax filings, whether assisted by accounting professionals or without can aid in keeping your cash balance healthy by avoiding penalties that could be anywhere from £150 for one day of late submission of annual accounts up to a staggering £1,500 fine for six month delay.
This is only the penalty that you incur if you’re late in with your annual accounting but this does not include fines you incur if your account is in a hurry, or if you submit the wrong forms for self-assessment tax returns tax return, VAT return and corporate tax. Your accountant will stay up with your deadlines, so that you don’t have to.
If you’re currently a contractor, plan on being a contractor, or have company that hires contractors, you must be aware of numerous tax implications that you need to be familiar with. Self-employed contractors operating through a limited-company can enjoy tax benefits but must comply with IR35’s rules to be able to claim the benefits legally.
- Help you grow your company
An accountant who is competent will provide you with knowledge and guidance in helping you increase and expand your company.
Typically, clients are assigned an accountant who is their own starting from day one, which means that you’ll work together with a professional accountant. They is familiar with the workings and nuances of your business. They will have a great deal of pride in seeing your business flourish.
- Remove your tax worries
Taxes are a bit complicated. The HMRC guide to expenses exceeds 100 pages So it’s no surprise that a lot of small-scale business owners are concerned about tax matters.
It is important to create your annual company financials and prepare abbreviated accounts for your company when appropriate, prepare taxes for yourself, create the corporation tax computations and returns as well as VAT calculation submissions. communicate with HM Revenue and Customs, handle Companies House and sort your payroll can be a hassle which can be averted by a good accountant.
Your accountant will make all the paperwork that you require, thereby saving cash and providing peace of mind while permitting you to continue managing your business.
Cheylesmore Accountants
7, Edison Buildings, Coventry CV1 4JA
024 7601 7778
cheylesmore.com
