We’re here to help you transform the way your business operates. In this series of guides, we’re talking about how TreyBridge Accountants can save you time and money, ensure compliance, and guide you towards sustainable business growth.
Whether you’re a sole trader, entrepreneur, limited company director, a partnership or thinking about launching a start-up business, tax is a universal certainty. Making sure that your tax returns are correct at all times is a laborious, complex and stressful task, which is why TreyBridge Accountants offers a flexible and cost-effective tax management and planning service.
In the UK, 56% of all small businesses are sole traders. Being a sole trader means that your taxes are a little easier to manage than those of limited companies, but that doesn’t mean they’re a doddle. Every business transaction still needs to be properly logged and accounted for, which enables you to submit an accurate self-assessment tax return each year. So many sole traders either submit their tax returns late or make errors in the process, which often results in fines and interest being charged by HMRC.
We’re here to manage your self-assessment tax returns for you, saving you time, ensuring accuracy and compliance, and even saving you money by recommending relevant tax-saving opportunities.
There are a few benefits that come from setting up a limited company, as a director’s personal tax bill will be lower than if they were a sole trader. There’s also less financial responsibility if the business goes bankrupt, plus many potential customers prefer to work with limited companies rather than sole traders due to companies having a more official structure.
However, the tax system is more detailed for limited companies, especially as the business grows and takes on additional staff and clients. This means more paperwork, as company tax returns, balance sheets, profit and loss records, cash flow statements, and reports of assets and liabilities are all required. Meanwhile, a confirmation statement is an annual document that helps Companies House to ensure that their records remain accurate.
If you run a limited company, we can take all of these crucial tax management tasks off your to-do list.
Once your business reaches the VAT threshold, which is currently a taxable turnover of £85,000 a year, it is required to become VAT registered. However, many business owners decide to register for VAT beforehand, as it adds an extra level of prestige and could potentially help you to win larger contracts. If you’re partway through the financial year and expect your upcoming sales to take you over this threshold, it’s important to register right away, otherwise HMRC will backdate what you owe.
The team of tax specialists here at TreyBridge Accountants can manage all aspects of VAT, from registering you with HMRC to raising your VAT returns on a quarterly basis. This also means that you can usually reclaim the VAT you pay on goods and services for use in your business, making early VAT registration a strong investment in running a profitable business.
We pride ourselves on helping business owners to reduce their tax bills through up-to-the-minute tax advice. There are multiple tax-saving schemes that you may be able to access, such as R&D Tax Credits and the Tax-free Childcare Scheme, plus we’ll advise you on how to claim all eligible expenses and explore other opportunities such as tax relief through electric vehicles and working from home.
On a more personal level, we can also provide expert tax planning and family wealth management services, helping you to achieve your life goals more easily.
If you’re interested in finding out more about tax management and planning services for sole traders and SMEs, please call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in our contact form.
