I can do it myself.
How many times have you decided to do something yourself, rather than delegate or wait around for someone to get the job done?
As a business owner, the onus is often on you to stay on top of things, and make sure that the cogs keep turning and the machine keeps running. That may be something that you can stay on top of at the beginning, but as your business grows, the less time you will be able to dedicate to everything. To borrow from the game of strategy- Risk, spread yourself too thin and you’ll find the enemy troops (or competition) ready to swoop in and take over your lands.
Changing the mentality you have, from thinking that in order for something to get done you need to do it yourself, to being able to delegate appropriately, will allow you to focus on the growth of your business, rather than drowning in a series of never ending tasks.
Hiring an accountant is one of the ways you can reduce the work-load and give yourself the piece of mind that your accounts are in the safest of hands. We get that not everyone wants to take on an accountant, perhaps they feel like it is an unnecessary cost or simply haven’t thought their business requires one.
However, there are some important factors that you should consider before disregarding the value of an accountancy practice for your limited company.
With each year, new tax laws and changes are brought in. The most important one for this coming tax year is Making Tax Digital. If you, or your current agent, are not prepared for MTD, it really is imperative that you get a move on.
Do you have the time to keep up with the new systems and tax changes? Things move quickly, and HMRC has a zero tolerance policy for mistakes made due to negligence. Completing your accounts and tax returns will take you time, time that could be better spent on your business.
Rather than spending several hundred pounds a year on commercial tax filing software, your accountant would be able to do the same job, which will be spread across their clients rather than falling to you.
Corporation Tax Return
The CT600 corporation tax return only covers a period of one year, which means that in your first year of trading you may have to do two returns if your accounting period is a couple of days over one year. This can get pretty complicated, and is worth going over with an accountant.
Fines and Penalties
Some of the fines and penalties you can incur from filing a late tax return can get very expensive. HMRC’s penalty regime is famously strict, and if you are a sole trader, you could be facing fines of up to 5 percent of tax due if you are later than 12 months. The minimum amount you will owe for filing one month late will be £100.
Lite Tax is a chartered accountancy practice based in Nailsea, that serves businesses across and around Bristol. If you would like a free consultation then give us a ring at 01275 541807 for your free quote.