Chris James explains why it’s time to find a web-savvy accountant.
From April 2018 small business owners will be required to make quarterly returns to HMRC for their income tax.
All businesses, including limited companies, will be required to do so by 2020.
This will mean significant increases in reporting required for small business owners and while there are discussions ongoing with HMRC, it seems that this will need to be submitted online.
This is bad news for those business owners who have up to now managed to avoid computer-based record keeping.
Those who have a good accountant will be in an infinitely better position than those who don’t because although HMRC are lenient with late filing to begin with, when they do start charging fines and penalties these are hefty.
This was seen with the Real Time Information (RTI) system introduced for employers which currently charges a flat £100 penalty per late submission.
HMRC believes this is going to make business owners more informed in an age of internet banking, as they will know how much tax they need to pay on a more regular basis.
But sceptics are theorising that HMRC will follow this up with a requirement to pay taxes due on a quarterly basis as well.
So now there really is no better time to make sure that you have an accountant who can guide you, ensure you are kept up to date with your record-keeping and makes sure you remain on the right side of new legislation.
This is the case whether you are a small business owner or the director of a limited company.
If you need an accountant or just think that changing to a new one could be beneficial, contact Alan Patient & Co.
Remember, the first consultation is free.
Alan Patient & Co
9 The Shrubberies
020 8532 9843