By 2018, HMRC wants to make tax season a regular affair. Already implemented in the States, the quarterly tax return will require businesses to crunch the numbers every 3 months.
As an accountant in Milton Keynes, we are used to the bookkeeping process, meeting the needs of small businesses up and down the country. But, for those without a professional hand to tidy their accounts, the new proposals could result in an increased administrative burden.
Tax returns are notoriously tricky to understand. While HMRC has tried to simplify the process as much as possible, small businesses are still prone to error. In the past, this may not have been such an issue. Now though, HMRC have begun to crackdown on all incorrect tax returns, with nearly 15,000 businesses penalised in the 2013/2014 tax year. Could we see these figures rise if tax returns are multiplied by four?
Milton Keynes accountants are wary. The proposed plans would require all small businesses to complete their quarterly tax returns online. While this may seem like a sensible option, not all business owners have the same level of digital dexterity. Those in rural areas, where broadband speeds are questionable at best, could face difficulties. All in all, the policy will need to be carefully integrated and monitored if the scheme is to prosper.
Milton Keynes accountants already provide expert financial services for struggling businesses. If tax returns become quarterly in 2018, the emphasis on coherent bookkeeping will increase. Delegating tax return completion to a Milton Keynes accountant could lift some of the stress from your shoulders. When HMRC’s plan is put into action, it will be smaller businesses that are targeted first. If you aren’t prepared for the change, then there’s every chance you will succumb to last-minute panic.
The alterations are designed to help small businesses keep track of the tax they owe. Regardless of these intentions, if you don’t have the time or skills to complete the tax returns yourself, you could end up with regular fines and sanctions. At Aston Black, we take care of bookkeeping procedures for you, so you can focus on what matters to you: the growth of your business.
While business owners often find it difficult to delegate, outsourcing your tax returns is a smart investment. You won’t lose a week each quarter to last-minute bookkeeping and you won’t run the risk of making an error. Instead, you’ll be able to carry on generating sales, while your Milton Keynes accountant balances the scales.
Businesses that outsource their financial gardening are more profitable as a result. Why trim your own hedges? Leave a small business accountant to correct any issues in your tax returns and calculate areas where expenditure could be cut in the next quarter. HMRC’s plans are quadrupling a task you already do your best to delay. Pass the hours onto your accountant and use the free time to plan your next game-changing venture.