Did you know that for 2021 to 2022, the Portsmouth City Council, of which Southsea is a part, increased council tax by up to 5%? That does not need a local referendum. Before starting your own small business, you need to pay a business rate calculated by a small and standard multiplier. Handling your accounts, submitting annual tax returns, managing business, tax rebates or choosing a suitable VAT scheme can be challenging without enlisting the services of a professional.
Tax specialists who know the ins and outs of the trade like these accountants in Southsea can help you with complicated tax procedures and documentation while letting you maximise your gains simultaneously. What are the other benefits of hiring accountancy services for your business? Read on.
For filing Company Tax Returns
All businesses in the UK, including small ones in Southsea, must file a company tax return if Her Majesty’s Revenue and Customs (HMRC) sends you a notice. Even if you don’t have to pay any tax, the recovery still has to be made. Not doing so can lead you to incur penalties. The returns should include profit or loss for Corporation Tax and Corporation Tax bills, while the deadline should not exceed 12 months and nine months, respectively. The entire process is incredibly complex, time-consuming and challenging. A tax specialist will create online accounts, gather the documents as required, identify tax-deductible costs and submit them by mail or online and help you avoid the penalties or other inconveniences.
For paying your Self-assessment Tax bill
Since you are the owner of your business in Southsea, regardless of it being small or large, you will have to declare your taxable earnings to the government body, in this case, the HMRC. Wrong calculations, late submissions or other inconsistencies can lead you to face penalties. For example, the concerned body can resort to enforcement action to recover the amount, recover the money through debt collection agencies, close down your business and even declare you bankrupt. Hiring a professional accountancy firm will assist you in making the correct deductions, apply for reliefs, update your tax account, claim tax refunds if you are eligible and ensure that your bills are paid at the right time. Of course, you need to authorise your accountant or firm to deal with the HMRC.
Handling your VAT rates
You can charge value-added tax, or VAT, only if your business in Southsea, Portsmouth, is registered for it. If it is, you should inform the HMRC how much of the tax you have charged and how much of it you have paid. The process for that is known as the VAT Return, which is done every three months. If the value-added tax is more than what you have paid, you must pay the difference to HMRC. You can recover the difference if you have spent more than you have charged. There are three different rates: standard, reduced and zero. Hiring a VAT Accountant will ensure that you pay exactly the right amount, all the processes are followed, make timely returns and keep you updated with any changes in the policies.
Taking care of your Capital Gains Tax
The capital gains tax will only come into play when you make a profit by selling an asset whose overall value has increased. Of course, this is not an annual or regular tax since it’s not every day that you sell a property. However, some assets are entirely tax-free. If the profits fall under the tax-free allowance, you do not have to pay this tax. If you incur losses on chargeable assets, you can report them to HMRC, who will then reduce the tax amount. You can get the specialised service of a tax specialist to handle the capital gains tax for you as they will identify the tax-free assets, pay the gain within the stipulated deadline, take all the documentation and help you get relief if applicable.
Hiring the best tax specialists like these accountants in Southsea will ensure that handling your taxes is no longer like making your way through labyrinthine streets. They will ensure that your taxes are filled in on time, manage your paperwork and ensure that you can run your business the most smoothly and profitably.