Tips in easing business tax returns difficulties

One of the most confusing, hectic and headache inducing time in a businessman’s year is tax month. For a lot of business owners tax month is when most of the mistakes and lackadaisical attitude towards book keeping come back to haunt them. But even with the most meticulous book keepers problems and confusion still crop up during this crucial time.

Every year about 10 per cent of the 9.5 million who are required to complete a self-assessment form miss the deadline and, as a penalty, incure a £100 fine. Business owners shouldn’t worry or complicate their lives when it comes to the subject of tax returns. With careful management business owners can always reduce the anxieties that is associated with filing tax returns.

Here are some ways that can help minimise the headaches that filing a business tax return can give you:

Remember that you can always file your tax return online

Last year some problems cropped up when the Inland Revenue’s website collapsed last January 2005. But even with this recent problem, you must not be put off from filing online. It is a safe, convenient and secure option, just don’t do it at the very last minute, of course. In fact, the Inland Revenue processes internet returns faster than paper counterparts. Also, the automatic calculation of your tax means that you would immediately know if you owe anything or the agency owes you something.

Always keep a copy of what you have submitted for this year

Make a photocopy of your tax form and all paperwork that you have submitted. By doing this you not only have a reference that you can use for the next 12 months, you can also use it to compare with your tax returns for the next year.

Never throw away the paper work

You will need all of your financial records in order to complete a self-assessment form so make sure that you compile them and keep them safe. Store important documents like bank and building society statements, business earnings, expenses or accounts in a secure place.

Keep a detailed note of all your income

Even if the income is taxed at the source, for example bank interests, dividend payments or state pension, you will need to keep a record of it. You can leave off the income or gains from tax-free accounts like individual savings accounts.

Don’t hesitate to ask for help

If things are getting a little out of hand (you can’t find documentation, your book keeping is not up to date, your totally forgot that the deadline is near) always remember that help is always available. You can always hire an accountant even for just a short period of time. An accountant can help your sort out your documents, advise you on what to do and generally help ease the difficulties of filing your tax returns while at the same time ensuring that you are compliant with all the requirements.

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