Taxation on business in the UK is always evolving. As most of Europe moves to pull itself out from a recession, governments are looking to make key changes which are able to encourage the growth of businesses, particularly those which are small to medium in size. With a number of high profile international firms coming under scrutiny in the media with regards to their tax payments, businesses are keener than ever to stay on top of their affairs.
Paying a fair share of tax is not only a matter of moral integrity, but recent news coverage has shown business leaders that it is something which can have a considerable impact on the reputation of a business. At the same time, businesses should be working hard to ensure that their finances are properly balanced, so as to ensure that taxation doesn’t present a larger burden that it needs to. Here, we take a look at a few things businesses can do to take care of their tax.
A Dedicated Team
At the best of times, business taxation can be complicated. With so many changes coming into effect as the UK government takes steps towards growth, it is more important than ever for firms to dedicate a team of accountants to the task of sorting out their taxes.
Employing accountants and a financial director will not only streamline the financial side of a business, but it will take pressure off other parts of the business, allowing them to dedicate themselves more fully to the ongoing development and growth of the business from the front line. In addition to these services it might also be beneficial, particularly if your business is struggling to meet HMRC payments on time, is to speak to business turnaround experts. London based Moorfields, for example, are insolvency practitioners that can advise on everything from a Company Voluntary Arrangement to full business turnaround consultation.
Taking note of the damage done to a number of large firms as a result of their complicated tax schemes, businesses in the UK need to ensure the highest level of transparency when it comes to filing their taxes.
Not only will transparent books earn them the trust and support of their customers, but this will reduce the overall cost of keeping and presenting a company’s finances. Read more: HMRC sets sights on off-shore trusts
What is essential for any business when it comes to being upfront about tax is records. The more information your business records and stores about their financial transactions, the simpler the taxation process will be for all parties. If a company lacks key or sufficient information, the process can easily become more costly than necessary. It is particularly important for record to be coherent and for new accountants to be made familiar with previous documentation.