There is a possibility you will know a bit about the tax system, most feel they have more of an understanding than in the past. Whether it is Personal Tax returns, Accounts, Company Tax returns etc. These are all documents and names we have heard of at some point in our lives and certainly most business owners will be very familiar with these.
An area that is more complex but very beneficial to you is tax planning. Tax planning is very important whether you are:
– New to business with relatively high/low profits, or
– An experienced businessman registering very high or possibly low profits
No matter what stage your business is at, planning for tax purposes can make a big difference to your tax bill at the end of the year.
There are many different areas to be looked at, for example. Are you a sole trader? Would you be better with a limited company? What tax implications would this have? Would they be beneficial with your current level of earnings?
These types of questions are not easy to answer yourself and a lot of people do not know to ask these questions in the first place, which could be costing them a lot in tax.
Another example may your estate (which basically means everything you own) is growing, do you know that if you die and it is over a certain level (currently £325,000.00) part of that may be taxable, and at a rate of possibly up to 40%? But do you also know that by planning many years in advance there may be ways to reduce the amount that would be payable? Once again a lot of people understandably will not know about these things.
That’s why it is vitally important to not only have someone who does but also have someone they can trust to guide them through all the possible scenarios. With our experience we believe our knowledge can add some value to whatever your scenario may be.
Whilst completion of tax returns and statutory tax obligations are important jobs, all accountants should be capable of completing them. We try to do more than just this and are more interested in maximising your tax planning opportunities.