When you should (and shouldn’t) file your own taxes
Whether to file your own taxes or to use professional accountants is a question that many people will ask of themselves every year. There is no reason why you can’t file your own taxes if your situation is uncomplicated and you have a good head for numbers, but it is important to remember the consequences for getting it wrong.
Paying too little in the way of tax can lead to significant fines and you’ll have to pay back all that you underpaid by, with interest, too. Here we explore when you should (or shouldn’t) do your own tax return:
You’re good with numbers
If numbers are your thing then keeping control of your accounts can be sensible as you know the ins and outs of your business. If numbers make your head spin, however, then you should leave it to someone else!
Your taxes are simple
If your taxes are unchanged and simple then it can be easy to update your return. If you’ve made changes, bought equipment or made investments, however, then this can be far more challenging to update.
You don’t own property or investments
Property ownership and investments significantly complicate your tax return. If you’re unencumbered then a return is simple to do. Earnings from these investments will need to be taxed though, so it is important to get a professional in to help.
You understand tax laws
If you can read through the tax information online and understand it all then you’re well placed to submit your own return. If you’re left scratching your head, however, then it is better to let someone else handle your bookkeeping and tax returns.
Keep it simple
For most people completing the tax return at the end of the year is a burden that leaves them confused and overwhelmed. If this is not the case for you then submitting a simple tax return yourself can leave you feeling confident, but for those with any doubt the safest step to take is to get professional accountants to help you out. This cost can be deducted from your taxable income too, so you’ll be saving on this outgoing as well as saving yourself from significant fines!
To discuss your self assessment get in touch with our Business Services Partner Robert:
Tel: 01825 763366
Online tax return due date: Midnight 31st of January 2018
Pay the tax you owe: Midnight 31st of January 2018
3 key bookkeeping mistakes all SMEs should avoid
If you run your own SME, then chances are bookkeeping is not one of your favourite jobs! For many small business owners it is a necessary evil that takes up lots of valuable time. Of course, it is vital to do in order to keep you compliant with the law and make your annual tax returns easier to manage.
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