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Whether you are self-employed or run a limited in the company in the UK, you will have to keep up with paying your taxes. One of the best ways to make sure that you stay on top of your tax obligations is to get it right from the start.
When you set up your business, get in touch with a company of outsourced tax accountants. As UK tax law has become more complicated, outsourcing tax advice is no longer just a good idea, it is a must.
Simple Tips To Stay On Top Of Your Tax
A firm of UK tax accountants will make sure that you have the best advice possible when it comes to tax. There are many ways to reduce your tax bill and having a good tax accountant service to turn to is essential.
It does not matter if your business is large or small. Professional tax accountants can always find some way to save you money.
Saving Up For Your Tax Bill
Of course, it all depends on the size of your business. However, there are some general rules that all businesses can put to good use.
Managing tax bills is all about best business practise. Don’t try to avoid your tax bills. As a business owner, you will need to face up to the fact that one day you will have to pay tax. Instead of putting it to the back of your mind, deal with it head on. In other words, plan ahead. The best way to do that, is to save up for it.
Set Up A Separate Bank Account
One of the best way of managing tax bills, is to save up for them. It may sound a bit simple, but when it comes to tax, keeping it simple works. That way you will never end up with an unexpected tax bill. You may even build up a slight surplus.
Set up a different tax savings bank account with your bank. Doing so makes it easy for you to transfer an amount for tax every month. Tax is paid on the net profit of your business, so you should calculate the amount on your net profit.
How Often Should I Work Out My Net Profit?
It is a good idea to work out the net profit of your business per month, and transfer the right percentage for tax into your tax savings account. Yes, you may overestimate, but that is better than underestimating. At least you will not have to panic and worry about taking out a business overdraft when you need to pay your tax.
You can even do the same thing with your VAT. Set up a separate bank account and pay your VAT from that bank account.
Stay On Top Of Your Accounts
Many smaller UK business don’t do their accounts from one month to the next. Instead they leave it for months at an end.
That is not really a smart way to run your business. When you own a small or medium sized business, make a pact with yourself. Make sure that your accounts for the month and year to date, are done within five days of the end of the month. In that way, you will always have a complete picture of your business. It also makes it easier for you to stay on top of your tax.
Using outsourced tax accountants is essential, but at the same time, you need to take day-to-day responsibility for running your business.
You may also like: 4 Strategies to Make Your Tax Preparation Easier
