Thankfully the call to file a tax return comes just once a year. At best it’s a time-consuming headache. At worst it’s a nightmare.
With the deadline to file this month rapidly approaching, let’s think about what you could do to ease the pain next time around with these tax return tips.
Every year your limited company must meet its legal obligation and file a corporation tax return. A key problem for many dynamic, growing businesses is that it is easy to forget the tax return until close to the due date – and then suddenly it’s all hands on deck!
It doesn’t have to be this way! By making a few simple resolutions, you can ensure your next tax return goes without a hitch. Better Invoicing If you are a non-cash business, you should be issuing an invoice for every single sale you make. HM Revenues & Customs place the responsibility on you, not your suppliers, to keep track of the money going in and out of your business. Prompt and effective invoicing will not only improve your cash flow, but the records will be an essential aid when it comes to filing your tax return. Track Everything Invoices aren’t the only thing you want to keep track of. You’ll also need the following:
- Receipts and/or VAT invoices for every purchase that your business makes, including ones made using cash.
- Monthly bank statements for your business account.
- Records of when invoices are paid and the method that was used (BACs, cash, etc.)
- Paperwork for non-sales income. This could be loans or income from interest, for example.
Get a Routine The most effective way to ensure nothing gets missed is to have a routine and a process for tracking this information. This applies even to non-financial staff: for example, you may want your sales team to get into a routine of submitting expenses every Friday afternoon. Following these tax return tips will ensure that come tax time, you already have all the information you need to hand. Discover everything you need to know to help make your business a great business with our one-day financial literacy training workshop Colour Accounting™.