Every business person and contract worker knows that they have certain responsibilities in terms of their financial record keeping and tax assessments.
However, understanding that your financial affairs should be in order and actually ensuring that they are, are two very different things. HMRC have invested millions of pounds into their investigations department due to the very lucrative returns each check can return.
Essentials like keeping bank statements, sales invoices and receipts are still vital when it comes to record keeping. Failure to keep such records can constitute to a penalty.
The days of sitting with an inspector to go through your books may have disappeared a long time ago. With the introduction of Making Tax Digital, keeping digital records to help improve accuracy and save physical filing space are now also essential when dealing with HMRC during an investigation. These digital records can now be shared electronically, so the one-to-one visit from HMRC is no longer required.
Tax Assessments can be issued to anyone so keeping records if vital, but especially where you run your own business, you need to be prepared and ensure you are claiming expenses wholly and exclusive for work, as well as reporting all taxable income correctly. Failure to do so, can result in a very costly bill.
A Blue Skies media specialist can help.
By using our business and media specialists to help you with your accounts, not only will it free up more of your time to enable you to focus on growing your business, but it will also give you peace of mind. If you’re one of the selected businesses to be put under the scrutiny of these record checks, or subsequent tax investigations, you won’t have the stress of worrying whether or not you have got your self assessments and tax returns correct.
It’s important to bear in mind that the tax Inspectors at HMRC are only doing their job; however, that doesn’t necessarily eliminate that feeling of worry that most small businesses face when they know that their financial records are going to be looked over by an inspector.
Because fines can be imposed for the late filing of tax returns and for poorly managed accounts, it’s important that your record keeping is kept up to date every month, so that not only do you know exactly where you stand, but in the event of a tax investigation you’ll be confident that everything is in order and you won’t face additional payments to the tax man.
Approachable & friendly accountants.
By employing the services of our business and media specialists, all of your records will be kept current and in line with tax legislation. Unless you have experience of managing your tax accounts, it’s easy to overlook things and to make mistakes. While these may be unintentional, it still poses a potential risk that your tax returns have been completed incorrectly and that you haven’t paid the correct amount of tax.
HMRC business record keeping checks and tax investigations are there to identify any inconsistencies or mistakes which could lead to an additional tax bill for to you to pay. Any inconsistencies within your financial affairs can result in even the most basic tax check evolving into a far more thorough review, and so it is vital that from the moment that HMRC look at your records, they do not see any unwelcome ‘red flags’.
Besides providing a professional and comprehensive accountancy service, by using Blue Skies’ business and media specialist accountants, you’ll also receive a friendly service and the opportunity to contact us at any time you feel you may need some additional support, guidance or advice.
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You’ll receive a friendly service and the opportunity to contact us at any time you feel you may need some additional support, guidance or advice.
