One thing that many business owners loathe each year is submitting their tax return. Many will put it off until the very last minute and rush it’s completion to get it in on time.
Whereas other don’t give their tax return the care and attention it needs. Missing the deadline and lack of care can result in your financially strong business having to pay penalties and fines.
As well as causing additional problems in the future. So it’s vital that it is correct and submitted in plenty of time.
Here are some common mistakes business owners make that you really need to avoid.
Overlooking capital tax allowances
Many business owners make this common mistake without realising the benefits it can provide. Capital tax allowances can be claimed when you buy assets that keep your business running each day.
These can include vehicles, equipment and integral features such as lifts and air-conditioning units. These allowances can give you support and flexibility by letting you choose when you use them.
For instance, if your business made a loss this year, you can save your capital tax allowances until you make a profit. This will then help you pay less tax by reducing the profits you have made.
Find out which assets you have that can be considered capital allowances or hire an independent specialist to help you. This gives you more control over your return while also putting your business first.
Not knowing when the deadline is
You’d be surprised how many business owners don’t know when the tax return deadline date is. This can be a big mistake as it increases the chances of them missing it altogether.
Penalties for missing the deadline increase the longer you delay. Which can put your business in a vulnerable position. For paper tax returns, you have until the 31st October. For online tax returns, you have until 31st January. These follow the end of the tax year which is the 4th April.
Write these date in your diary or on a wall calendar. It may also be beneficial to set reminders on your phone and computer.
Not including required information
At each stage of your tax return, you will be required to provide information ranging from contact details to business figures. Not including all of the information that is required is a costly mistake that can be a huge waste of time.
You cannot write statements such as ‘information to follow’ as this will not be accepted. You should have every key piece of information with you as you complete your tax return. If HMRC thinks you are purposely missing out or providing inaccurate information they will prosecute and fine you.
To avoid this, keep up to date records and triple check your return before sending it off.
If you give yourself plenty of time to complete, check and submit your tax return, you will increase your chances of success.
It’s a necessary task that is better completed sooner rather than later to keep your business running smoothly. If you need additional help and support, visit the HMRC website.