According to accounting software providers, QuickBooks, over 50 per cent of UK small and medium-sized enterprise (SME) owners have made a mistake when filing their VAT returns, while just a quarter (25 per cent) feel confident that they have filed their VAT accurately.
As the business owner, it is important to bear in mind the following tax obligations when filing your taxes:
If you are self-employed, you need to check whether you are entitled to tax credits, so you don’t lose out on valuable income later on.
Self-employed individuals are entitled to the same personal allowance as someone who is employed.
Don’t overpay your taxes
A recent study revealed that small businesses are 56 per cent more likely to overpay on their taxes due to VAT filing mistakes.
Only half of all SME owners have completed their taxes efficiently or even correctly, and subsequently, many are overpaying their taxes.
Despite being able to claim this tax back, these errors could ultimately cost you and your business, which could negatively impact your cash-flow.
Making Tax Digital
In April 2019, the Government began its digital transition for ‘making tax digital’, making it easier for individuals and businesses to accurately file their taxes and reduce the number of mistakes being made.
Therefore, as an SME owner, you must stay ahead of the changes, as this will affect your businesses taxes.
To avoid any errors in your next tax return it makes sense to seek out professional advice to ensure that you avoid penalties and do not pay more than is due.