London, England -- (SBWire) -- 10/16/2015 --If you operate a small business it is vital to keep accurate records of your business transactions throughout the year. Any sort of unverified expenses may end up being quarried if you get a tax investigation. By law, a business owner is required to keep all of his or her receipts, bank records and also credit card records for a minimum of four years after the end of the financial year. Purchase invoices and bank statements usually are verification of exactly what the firm ordered as well as the date of purchase. Credit card and bank account details, together with cheque stubs provide evidence of the actual expenditures.
Any accountant in London will tell you that it is essential for any business owner to have a system of record keeping that is complete and organised.
HM Revenue & Customs have certain legislative specifications for fixed assets. These are typically items that can be used for business as well as personal needs. Examples of these items are motor vehicles, computers and mobile phones. As an example, a laptop or computer used in a business that is operating out of home needs some kind of a log and a car that is used for personal needs will require some sort of record of usage.
Keeping accurate accounting records is also important for business tax management and tax planning.
Employing a few end of the year taxes strategies can produce huge benefits for a company tax wise. Often a business can legitimately reduce it's tax liability for the year by maximising its deduction of expenses. Simply, try to buy things towards the end of the tax year that can be used within the 1st quarter of the next tax year. These items might be stationary, stock or something that a business will use regularly for its day to day operation. The idea is to get tax relief for the expenditure as early as possible. Bear in mind that the company will need to be making a profit for this tactic to be truly beneficial.
Buying machines towards the end of the tax year is another good tax strategy if for example the business was planning to buy that equipment in the first place. People always ask us, do I need an accountant in London to implement these ideas? The answer is yes. It is always a good idea to consult a tax accountant for help and advice with implementing tax saving tips due to the fact that their usefulness and benefits differ from one situation to another. Check to see if deducting the entire expenditure at once or spreading costs through a number of years will be better, in terms of tax savings.
Paying off overheads such as telephone, car insurance, utilities, travelling expenses, repairs and maintenance and lease ahead of time will help minimize the tax liability of a business. It can also be a good idea for the smaller businesses to take advantage of stock write offs by providing for damaged goods and obsolete merchandise. This is usually depending on the accounting principles being used by a business.
A business must retain all of its records for 4 years or more. It is advisable to save copies of business tax returns, equipment expenses, permit, formation paperwork, and financing arrangements for as long as the business is in operation.
There are specific dates that a company operator needs to be aware of in order to be able to fulfil its tax obligations. These dates include the personal tax return 31st January dead line. The employees PAYE & NI are due monthly or every quarter. This will depend on the payroll size and arrangement with HM Revenue & Customs.
To get further help with tax issues a business owner should visit HM Revenue & Customs business website. It has a lot of information and guidance on business structure, tax deductions and employee income tax. In addition, it can give a checklist to help any business large or small. It lists other helpful government websites that companies can find useful.
For more information about Alexander Ene visit: http://www.alexander-ene.co.uk/
Company: Alexander Ene
Address: 336A Regents Park Road, London, N3 2LN
Telephone: 020 8343 2626
Keeping Accurate Accounting Records Is Important for Any Business