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:
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
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.
Self-employed and Partnerships |
Construction Industry Scheme (CIS) |
Limited Companies |
Employers |
Record of sales and takings:
Record of all purchases and expenses:
|
Contractors
Subcontractor
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Accounting records:
Business records:
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All PAYE records:
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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