Although it is possible to complete these forms firsthand, they are lengthy and often confusing processes. An accountancy firm will not only crunch all the numbers for you, they will also ensure you are claiming for everything you are entitled to.
A skilled accountant can help you understand which tax reliefs your business qualifies for. Many SMEs don’t realise they are eligible for corporation tax reductions and miss out on rebates because of it. In fact, it is very difficult to apply for these reductions without licensed software, as the programme HMRC provides is only able to deal with simple tax returns. With an accountant, this software becomes readily available to you and you don’t even have to learn how to use it.
If you fail to fill in your tax return correctly it can quickly become a legal issue. By law, businesses must declare their income and expenses to the best of their ability. The HMRC will then decide whether any discrepancies in the numbers are due to a careless error or a deliberate act of tax avoidance.
An accountancy firm is trained to check all your records fastidiously for these kinds of anomalies. In the event of an invoice or receipt being overlooked, they can dig it out from their carefully organised files and make the correction. When you are attempting to file the return yourself, it is very easy to gloss over these absences, because you aren’t working with the same level of scrutiny. In some cases HMRC fines can be up to 100% of the tax owed, so you need to decide whether you can really afford to take this chance.