Tax returns are notoriously confusing for many people to manage. The issue can stem from late payment of tax, unexpected tax bills, or confusion around the items that can be claimed. A Bath Accountant will be able to remove the confusion and help manage the tax return of a self employed person or small business owner.
Identifying Allowable Expenses
As a general rule, many self-employed individuals and small business owners under claim on their tax returns. This is because they are unsure of what they can and cannot claim against their taxable profits. An accountant will go through all of your costs to see what you are entitled to claim.
Avoiding Common Self Assessment Mistakes
As with any tax return, there is always the risk of errors on your return and HMRC’s investigation into these errors could result in you and your accountant facing a number of penalties. An experienced accountant can guide you through the process of Self Assessment tax returns to ensure that all the necessary information is included, entered correctly and that all income has been reported. This will also ensure that there is no suspicion of any inaccuracies when your return is submitted to HMRC.
Meeting HMRC Deadlines There is more on Accountants Bath at chippendaleandclark.com/accountants-near-me/bath/.
Tax Returns submitted late to HMRC incurs a fine of £100 automatically. We will make sure that your Self Assessment Tax Return is prepared and submitted online to HMRC before the 31 January submission deadline for online returns to avoid any penalty.
Handling Property Income
Rental income and its associated rules on allowable costs, mortgage interest etc, and the relevant reporting thresholds for property income are another area where a Bath accountant for Buy-to-Let landlords can offer valuable assistance in correctly reporting their rental income to HMRC and avoiding an overpayment of tax.
Advising on Payments on Account
Where payment on your payments on account for Self Assessment Tax Returns that are due above £1,000 for the subsequent year you will be required to pay half of the prior years tax liability as payment on account due on 31 July of the year of assessment. An accountant will be able to work out your payment on account due and advise you of the amount and date of payment well in advance to avoid any shocks.
