Tackling your taxes can seem like a task that requires infinite expertise, but with our tax tips for small businesses things might become a little clearer.
There are more than 5 million small businesses currently in the UK, representing 98% of UK business as a whole.
Although current tax rules can make it difficult for small businesses to know where their money is going, keeping up with your taxes will ensure things should run smoothly.
Keep track of everything
It might seem trivial, but making sure you’re recording your small business’ finances from day one is essential.
According to HMRC, documentation to support your tax returns needs to be kept for six years, so make sure your employees are aware of this.
Retaining these records may also allow you to track your business’ growth and observe any changes that might be taking place.
Think about going digital
HMRC have been moving towards a more digital system for a while now, and many small businesses are embracing apps and other software to keep track of their finances.
Their ready reckoner tool allows small businesses to plan their monthly budgets to manage their tax payments, and was used over 40,000 times between 2015 and 2016.
There are also webinars and other e-learning resources available with plenty of tax tips for small businesses so you can continue to build your knowledge.
Be aware of international requirements
Tax payments obviously vary significantly by country, so it’s a good idea for small businesses to get to grips with international financial regulations.
Make sure anyone responsible for payroll carries out their research thoroughly before making any payments internationally in order to avoid potential issues.
Alternatively, get in touch with an expert – especially if your small business is only occasionally concerned with international business.
In summary: tax tips for small businesses
Taxes are hardly the most exciting part of running a small business, but being in control of your finances is key to ensuring business success.
The recent failure of 29% of 101 startups was attributed to running out of cash, so avoid this by staying in the know about the taxes your small business should be paying.
The move towards a more digitalised management of small business taxes should make it easier to keep track of your small business’ finances.
Hopefully these tax tips for small businesses have put your mind at ease. To find out how we might be able to help with your small business, get in touch with us today.
