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Tax tips for the Self Employed

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If you are self employed, there are many things to consider when assessing the tax health of your business.

We have listed below just a few of the things your accountant should be discussing with you during your tax year end and on an on going basis:

• Have the businesses accounts been prepared using UK generally accepted accounting principles?

• Have there been any changes in tax legislation affecting what the business claims for tax? For example: new capital allowances, disallowable proportion of car leases or the concessionary carry back of trade losses.

• Are the quality and consistency of the businesses accounting records meeting the expectations of HMRC?

• Are the expenses being claimed by the business purely business related? If so, can this be proved to HMRC?

• Have any estimates been used in the construction of the businesses accounts? If so, have they been stress tested as being reasonable?

• Has a review been carried out for unclaimed capital allowances?

• Has work in progress been included within the businesses year end accounts?

• Have margin and expense fluctuations being investigated and explained?

• Have internal controls been considered and stress tested? This is particularly important for cash based businesses.

• Has the business been registered for VAT? If so, is the business using the most tax efficient VAT scheme?

These are just a few of the issues your accountant should be discussing with you.

If you would like to talk to us about your business, feel free to call us now on 0121 270 6305.