The Federation of Small Businesses says that half of its members complain that they struggle to figure out the tax rates at which they are required to pay. VAT, Pay As You Earn and Employer National Insurance Contributions have been identified as the most complex and time consuming.
If you or your business colleagues are spending many hours a year in an effort to comply with these three taxes, that’s time that could be better spent on running, and planning for, your business. The real cost of this extra work to you and your business could be in the region of three working weeks and thousands of pounds annually. And even then, there are no guarantees that you’re getting it spot-on right. If you are then subjected to an enquiry or aspect enquiry, your costs and stress level will rise significantly.
The introduction of Making Tax Digital (MTD) should present an opportunity to radically improve the small business experience of HMRC but unless it’s done right, it may miss the mark on streamlining the process of small business tax compliance.
We know all about what businesses need to do to comply, we are fully aware of MTD developments and we are happy to advise clients on all available tax relief schemes that could save them money. Our record in helping many established, new and fledgling businesses to get their taxes right speaks for itself. Paying for the right advice might seem like an upfront expense but will always prove to be the best bet in the long run.