Record Keeping Basics for Corporate Tax Payers

Keeping financial records of your business is essential in tax planning and pitching your business to investors and partners. As a corporate tax payer, you are all the more required to retain and manage business and accounting records for you to file an accurate Company Tax Return. The records are also important for accountants to ensure that your business’s Corporation Tax rate calculations are accurate.

Policies on corporate taxes in the UK are not as complicated as they seem. To assist you in the whole process of tax planning, here are a few things that business owners like you must know:

What accurate and up to date record keeping can do for you:

• Make it easier for you to pay the right amount of tax at the right time

• Avoid wasting time and funds on extra tax or penalties

• Keep track of your expenses and debts

• Receive the amount of benefits and credits your business really deserves

Why record keeping is a must:

• Avoid paying record keeping penalties resulting from failure to keep records for the required period of time

• Avoid paying inaccurate return penalties resulting from failure to present complete, readable and accurate records

• Defend your business in any mishap with the government by providing full and accurate financial records

There are various records that you need to keep depending on the size and complexity of your business. At the same time, the tax rates that you are to pay, collect or charge also differ depending on the same qualifications.

It is important that you keep your records updated. This way, it will be easier for you or your accountant to work out correctly the amount you owe to or can reclaim from HMRC. It is also important to note that your books and records should be easily accessible to the HMRC should they see it fit to study them.

Most records can be kept in drives or memory sticks as long as they capture all the information in every document. Make sure that they are presented—especially to the HMRC—in a readable format.

Record keeping enables your accountant to work out your business’s taxable profits, calculate your corporation tax rates and file them easily. For more assistance in this process, you can contact D&V Philippines now and speak with our expert advisers.

References:

¹ https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366523/record-keeping.pdf

² http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/ct/keeping-records/record-keeping.htm

³ http://www.taxdonut.co.uk/tax/corporation-tax/corporation-tax-records