John Nuth - Friday, January 23, 2015
1. Not keeping detailed records is one of the major pitfalls we encounter.
Basic bookkeeping isn’t complicated. We can advise you on setting up a straightforward system. But it’s up to you to maintain it. If bookkeeping isn't your strong point, keep all the paperwork relating to your business, the amounts you earn and bills you pay.
2. Keep an eye on the VAT threshold.
You have to register for VAT once your turnover exceeds the threshold in any 12 month period. If you break this rule, you could face serious penalties.
3. Watch out for deadlines.
Beware of key tax deadlines. In the case of self-assessment, the key deadline is 31st January. There are other deadlines for corporate (limited company) accounts. The key one is 9 months after your year end, with any corporation tax due at the same time. Beware - penalties for missing deadlines are rising!
4. Don’t leave it too late.
Whatever your deadlines are, get your accounts and returns done as early as possible. It's much easier to deal with your tax liability if you have plenty of time to make the appropriate arrangements. Good regular bookkeeping will also enable you to assess whether your income and therefore your tax liability is increasing (or decreasing) year on year. You may even be due a tax refund!