Small businesses in London have plenty of important tasks to deal with, from the day to day running of the business, to hiring staff, getting paid, and creating efficient working practices. But one task that all small businesses and self-employed professionals need to master is the tax self-assessment. The self-assessment tax return must be completed on time and correctly in order to avoid the penalty of HMRC fines. Here are the key things you need to do when completing your self-assessment form.
1. Get Your Code
Before you can file your return you need to get your unique activation code, without which you will not be able to submit a tax return. In order to get the code you must register with HMRC and then you can get yourself on the system where you fill out the form online. Don’t leave it too late to register as you need to wait for the code to be sent through the post.
2. Declare All Income
When you are filling out your form, remember to include everything you have earned throughout the tax year, including freelance income and income from second jobs, and not just the income you got from your main employment.
3. Include All Relevant Information
You must include all information that is relevant to your business’s finances and information about your expenditure as it relates to your business. If you don’t include all your expenditure you could find you are paying too much for your tax bill.
4. Include Only Claimable Expenses
Many businesses in London make the mistake of claiming for expenses that are not allowed to be included in business tax. Look for the rules surrounding business expenses and make sure you are following them in order to get the right amount for your tax as well as avoid possible penalties.
It can be difficult to work out all you need to consider for a tax self-assessment form, especially when you are starting your first business or changing sectors. It can help to get professional help from accountants in central London, particularly for your first tax return. You will ensure that there are no errors, and that your tax is calculated correctly, giving you the best financial health for your business. Tax experts work with a range of small businesses in different sectors, and you should look for someone who will be able to work with the size of your company and your specialism.
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