HMRC collects billions of pounds every year because some businesses continuously miss deadlines, don’t follow the rules, and think that they will get away with it. The majority of investigations are conducted on individuals, sole traders, and small businesses. Smaller businesses tend to have fewer resources to spend on lawyers and advisors, and often don’t understand the legalities of running a business.
When we talk about unpaid tax, most people assume that it’s been done deliberately, but that isn’t always the case. Yes, in some cases, it is intentional, but a lot of the time it’s because of a mistake. Inefficient bookkeeping, incorrect tax returns, lost invoices, and misplaced receipts all contribute to mistakes. If you make one error on your tax return, that’s enough for HMRC to open up an investigation.
Making a mistake on your tax return is easily done, but if you keep on top of everything, it’s also easily avoidable. Don’t leave everything until the last minute, try to keep on top of things every month, that way it won’t all come as such a shock. If accounting isn’t your thing, find someone to do it for you. Unsurprisingly, the people who fall behind on things the most are the ones who try to do everything themselves.
Do Your Research
If you don’t know what HMRC expects of you, then how will you know that you’re doing the right thing? Do some research and ensure that you understand what you are responsible for. HMRC’s website tells you everything you need to know, so it is worth spending some time going through it. Don’t forget about deadlines, and don’t think that it’s ok to miss it by a day. It is not, and you will receive a fine.
Trust Your Accountant
If you can’t get your head around the legalities and requirements, then find yourself a trustworthy accountant who will keep everything in order. We offer a range of services and would be happy to work with you. If you want to find out which services would suit you and your business, get in touch today and see what we have to offer you.