Be responsible citizens by filing tax returns with the help of tax accountants

The interpretation, reporting and recording of financial transactions is known as accounting. Every business, however big or small, needs to keep a proper record of all its financial transactions. This is where tax accountants are needed. Accounting is divided into different branches, such as tax accounting, financial accounting and managerial accounting.

Whatever the nature of the business; may it be a proprietary firm, corporation, or partnership firm, every business as mentioned above needs to keep a track of accounts and also needs to file, pay and return income tax. Accurately returning tax and correctly recording all the accounts is extremely beneficial for proper maintenance and reputation enhancement of any business. On the other hand, poor records might result in overpaying or underpaying of taxes. This means that uneven records will be directly proportional to the policies of tax returns. Overall, tax accounting is extremely critical for proper compliance of the taxation laws, and also for minimising the expenditures of tax.

Tax accountants are professionals specialising in the filing of online tax returns for businesses as well as individual tax payers. Such professionals are extremely important for every business and individuals who need to stay financially secure.

Why Online Tax Returns?

If you only have one job and receive no income from anywhere else you will probably never need to fill out a tax return. If you are required to complete one, the HMRC will normally send you a notice to complete your tax return. It is important to remember that if you realise that you need one and HMRC haven’t notified you then it is your responsibility to ask for it. The main reasons why Self Assessment may apply to you are listed below:

• You’re self employed
• You’re a company director
• You’re a minister of religion
• You have income from letting any property or land you own
• You receive other untaxed income, or significant capital gains, and the tax due on it cannot be collected        through a PAYE tax code
• You’re a member of Lloyd’s of London insurance and reinsurance market
• You receive annual income from a trust or settlement, or any income from the estate of a deceased person,  and further tax is due on that income
• You have taxable foreign income, even if you are claiming that you are not normally resident in the UK.

Before you start to complete your online tax return you will need to gather all the paperwork you will need. It will be very frustrating to get half way through the form only to realise that you do not have a crucial bit of data. Aside from this, it is actually a legal requirement to keep your paperwork up to date. You must keep records of your income for at least 22 months after the end of the tax year. If you are in business and self-employed as a sole trader or partner, or have rental income you are required to keep records for at least 5 years and 10 months after the end of the tax year. You will need to have the following information to hand when completing your online tax return:

• Your P60
• Details of any pay and taxable expenses and benefits received from your employer
• Bank and building society statements
• Cheque and paying-in book stubs
• Any dividend vouchers you have
• Your self-employment accounts
• Documentation about any capital gains that have been realised
• Information on other income including investments, savings, pensions, property or benefits you receive
• Paperwork on anything you can claim for, like self-employed expenses or charitable donations.

Each year the amount of people choosing to fill in their tax return electronically is increasing and there are many benefits to completing your tax return this way. There is no hassle with paperwork and you do run the risk of it going missing in the post. You will receive and immediate acknowledgement of receipt so you can relax in the knowledge that it has arrived safely. You can also buy yourself an extra 3 months as you have a deadline of January 31st. You can also save the form as you go along meaning that you do not have to complete the whole thing in one sitting. The HMRC will automatically calculate your tax for you and if you are due a refund you are more likely get it quicker as your form will be processed sooner!

Important Advices for Tax Accountants

Tax accountants can help you to prepare your taxable accounts for HMRC and they will also be able to help you to calculate the amount of tax you will need to pay and will also certify that their calculations are correct. If you are looking for general advice on tax and tax accountants then you can contact your local HMRC office where they will have details of all HMRC tax and specialist advice offices.

Under the requirements of self-assessment it is now a legal requirement to keep all records of your income and expenditure when you are not a full time employee. For example, a designer could be self employed but also have a part time job. If you are sent a tax return by HMRX then it is a legal request and you must file a return. If you do not do this you are liable to face penalties from HMRC. If you think because you haven’t been sent a tax return you don’t need to submit one then you need to think again. Even if HMRC have not sent you one there are various reasons why you would still need to submit one.

If you have not received a tax return and may still need to file one then anything on the list below are applicable:

• You are self-employed or a partner in a partnership
• You have received dividends that take you into the higher rate tax band (refer to our Tax Centre for the latest rates )
• You receive rental income
• Income from untaxed savings (excluding ISAs)
• You have received any other type of income that has yet been undeclared, e.g. after dinner speaking, consultancy work, online trading
• You have a capital gain, e.g. you have sold a second property, sold shares
Some other reasons why you may need to file a tax return, and where you could potentially receive a tax rebate or saving are:

• You receive a mileage allowance from your employers that is less than the tax free mileage allowance (2010/11 – 40p for the first 10,000 miles, >10,000 miles 25p)
• You made pension contributions, but are a higher rate tax payer
• You have paid for certain expenses or professional subscriptions that haven’t been reimbursed by your employer • You have made a capital loss
• Your PAYE code hasn’t been applied correctly, perhaps you have multiple jobs, or only worked for part of a tax year

Preparing a tax return can be a stressful and time consuming process and if you find you are not clear on something then it is best to consult with tax accountants who will be able to offer you professional advice. By doing this you can minimise the stress involved and could even find that you are able to make even more tax savings.

IT Contractor Accountants Can Offer you Specialised Advice

Professional IT contractor accountants can advise you on the best way to handle your contractor finances so that you can get the maximum return. They do this by using their vast experience and knowledge of relevant legislations and regulations. As an IT contractor you may not have this knowledge and acquiring this knowledge takes time and rather than missing out on opportunities in paid IT contract work trying to gain this knowledge, using the services of professional IT contractor accountants is likely to save you time and money in the long run.

IT contractor accountants can offer you specialised advice on something that is really a specialist area. Having a good accountant look after your accounts will ensure that you are not paying too much tax and they should also be able to offer you a personal service and be available to offer advice and answer any questions you may have. The service they offer should include calculating your PAYE and NIC’s, quarterly VAT return, prepare your year-end accounts, complete your annual return and also calculate your corporation tax liabilities. They can also liaise directly with HMRC on your behalf and advise you on IR35 and S660 issues.

Before you hire the services of an IT contractor accountant you need to work out exactly what your business needs. Your contractor accountant should be an asset to your business as they can advise you on legislation that may affect your company as well as saving you time and money. Finding an accountant that can make this side of your business as painless as possible is definitely money well spent and will hopefully turn into a long standing business relationship.

Below is a list of things you should take into consideration before you hire the services of a contractor accountant:

• What professional bodies are they regulated by and what qualifications and accreditations do they hold?
• Are they specialists in the contracting market? How much experience in this market can they demonstrate?
• What do their services cost? What’s included and what’s not?
• Are there any ‘extras’ you may have to pay more for? What about self-assessment returns?
• How and when will you pay your accountancy fees?
• Who will look after you on a day-to-day basis? How often will they keep in touch with you?
• What are their average response times (to your queries)? Will you have unlimited support?
• What other knowledge (e.g. tax saving advice) and services (will they set up a company for you?) to assist your business are provided as part of the fee?
• What are your responsibilities?

Remember that any accountancy fees you have to pay should be a fixed monthly amount and this fee should cover a comprehensive accountancy service. You will need to shop around as the fees will vary with each company so you will need to compare the services on offer.

Setting up a Limited Company

 The question is, why set up a limited company?  Setting up a company can involve more administration and higher costs than if you were just a sole trader.  The main benefit is as a limited company you are not personally liable for any debts if the company fails.  As a sole trader you are personally liable for any debts and can potentially risk bankruptcy if the debt is large and you cannot afford to pay it.  By setting up a limited company you can protect yourself against this.

A limited company is a separate legal entity and this means that it is responsible for its own actions.  The finances of a limited company are completely separate from the finances of its owners.  As long as you do not commit fraud or trade recklessly, as the director of a limited company the risk of loss is only the money you will have invested in the company.  You are however liable for any bank loans you take out if you provide personal guarantees for your limited company.  Being a limited company may also make you seem more credible to potential customers, partners or investors.

To set up a company you need to register (incorporate) with Companies House.  You can do this online using the Business Link and Companies House Web Incorporation Service.  An alternative to this is to pay a small fee and have an accountant, solicitor or agent do this on your behalf.  All you need to provide is some basic information and a few signatures.  There are ready made limited company names available to buy if you wish but if you want to form a brand new company you need to send a memorandum of association, articles of association and a completed IN01 form to Companies House.  A memorandum of association lists the company name, registered office and the nature of the business.  This must be signed by the director(s) and witnessed.  The registered office will be the official limited company address and this is the address that Companies House will send any notices, letters and reminders to.  The articles of association are the rules for running and regulating the company.

Many people do not have the time or experience to take care of all the administrative tasks associated with setting up and running a limited company.  In these cases there are contractor accountants out there that will take care of everything for you.  These companies can offer you a full package which will include the formation of your company, taking care of VAT and PAYE, Annual statutory accounts and filing of account and dealing with all correspondence from HMRC and Companies House.  Make sure you shop around before employing one of these companies to make sure you are getting the best value and service for your money.

Contractor Accountants

A contractor accountant provides accountancy services to contractors and freelancers while saving you as much money and time as is possible.  Running a business can be very stressful and a contractor accountant will make life a lot easier by removing the day to day worries you have as a business owner and taking on those tasks that can make the decision to run your own business a difficult one.  A contractor accountant will provide you with more leisure time by reducing the time you need to spend on administration tasks.

To save your business money using the services of a contractor accountant is a great idea. Of course, accountants do not come for free, but a little investment can go a long way.  When you balance out the savings a contractor accountant can make for you, it is well worth using their services.  A good accountant will help you with tax consultation, VAT registration, VAT returns, company formation, company dissolution and much more. Using a the services of a professional contractor accountant is the best way to reduce the amount of tax are liable for and they will know all the various things you can claim for to reduce your tax bill while still operating within the law.

A reputable contractor accountant should offer several levels of service, dependant on what you are looking for.  Your accountant can take care of your entire day to day book keeping and submit your accounts at year end to HMRC.  If this is what you need you will need to make sure you keep hold of all your invoices and receipts so you can hand them over to the accountant.  You may want to do the book keeping yourself and just submit your accounts to the accountant in order for them to complete the necessary paperwork.

Source your accountant as locally as possible.  By doing this you will be able to arrange meeting as and when they are necessary without having to do unnecessary travelling.  Talk to other businesses in your local area as word of mouth can be a valuable reference.  The internet has become one of the speediest resources for finding any kind of service you may require.  Carrying out a search is easy as the internet is so accessible. 

A great contractor accountant established since 1999, based in London is K&B Accountancy Group.  They currently provide thousands of contractors and freelancers with safe and legal ways to make as much money as possible. They offer an umbrella company service, limited company accounting and sole trader accounting as well as free personal tax planning.  Visit their website www.kbaccountancygroup.com to see for yourself the invaluable service they have to offer.

Nanny Payroll Service

As an employer of a nanny the whole issue of payroll may give you a bit of a headache.  Using a nanny payroll service can take all the hassle of payroll away from you.  A nanny payroll service is a low cost and comprehensive payroll service designed especially for employers of nannies and other domestic staff.  The service covers everything you need to meet Inland Revenue requirements for the correct and timely calculation and payment of income tax and national insurance.

Hiring a nanny involves a lot of paperwork like paying and filing payroll taxes and other legal formalities associated with this.  In order to complete all these formalities in the correct manner it would be advisable to use a nanny payroll service.  They will calculate and manage the payroll and taxes for your nanny accurately and in a timely manner.  A single mistake in the payroll process can cost you dearly so using a nanny payroll service will ensure error free results which in turn will save you money.

There are many benefits to using a nanny payroll service, such as:

• Guaranteed accurate results
• Will update your knowledge of the latest changes in labour law
• They will deal with and penalties or fines received from the Inland Revenue
• Nanny and employer details remain confidential
• The right advice is provided when needed

Why spend your own precious time managing your nanny’s payroll when a nanny payroll service can take it all of your hands and make life simpler and the process systematic.  A nanny payroll service will take the burden of payroll away from you and keep you free from and legal implications.  It will also ensure that your employed nanny will be paid accurately on the same day each month and there will be no delays.  A nanny payroll service will produce all payslips and inform you when and how much you need to transfer to HMRC in terms of Employee Tax and National Insurance and well as your Employers National Insurance.

In short a nanny payroll service in invaluable to those of you who employ a nanny and do not wish to deal with the day to day headache of payroll and all that it entails.  Nanny Pay by K & B Accountancy Group is a professional, timesaving, accurate and cost-effective service.  They will save you time and money by simplifying your payroll process.  Visit their website www.kbaccountancygroup.com to see the full list of the services they have on offerw.

Things to consider for Online Tax Return

 Just the thought of filling out your tax return can fill you with dread.  Many people find filing their tax return complicated and time-consuming.  It will not come as a surprise that almost 1 million people are fined each year for failing to file their tax return.  This is not helped by the fact that HM Revenue & Customs regularly make errors and one in four tax returns are calculated incorrectly.

Due to the constant changes to tax legislation tax returns are becoming more difficult to understand and this can lead to taxpayers risking incurring penalties by failing to complete their returns on time and correctly.  The HMRC has always been aware that the scheme is controversial and in an attempt to make the process as simple and as painless as possible online self assessment was born.  Although it is still early days for the online system, more and more people are becoming aware of its benefits.

Why you should seriously consider filing Online Tax Return

• ·         All calculations are performed automatically so you are spared unpleasant arithmetic.  You will also know instantly what you owe or if the Inland Revenue owes you.

• ·         If money is owed to you it will be repaid within weeks, maybe days.  The manual system takes far longer to process.

• ·         Once your tax return is submitted you will receive immediate confirmation of its arrival.  It is impossible for it to get lost.

If you have concerns about transferring sensitive personal details over the internet your mind can be put at ease as online filing is completely risk free.  Your information is protected by one of the most sophisticated security systems in the world.  It is almost impossible for anyone outside the HMRC to view your data.  All information you submit is encrypted and your account is protected by a unique User ID and password.

If you wish to save yourself a lot of time, worry and money you can employ the services of an accountant to do all the necessary calculations and complete your tax return.  A good accountant will even offer advice on how you can minimise your tax liability.  The accountant should be up to date in their knowledge of all tax legislation as they will in effect act as your agent, dealing with HMRC on your behalf.

If you are looking for an accountant to take away the hassle of your tax return visit www.kbaccountancygroup.com .  Their self assessment tax return service is second to none and extremely competitive when it comes to price.