News Biggest Tax Mistakes Made By Small Businesses

Biggest Tax Mistakes Made By Small Businesses

-

Tax mistakes can be extremely costly, especially for small businesses. From failing to declare certain expenses to leaving yourself with a mountain to climb by neglecting your financial bookkeeping duties, there are many errors that can occur.Keeping that in mind, make sure you avoid some of the most common errors revealed below…

1. Forgetting to include some employment benefits – This is a common mistake made by a lot of small businesses, especially if they have not taken the advice of an accountant in north london. A lot of companies remember the obvious, such as medical insurance and company cars. However, it’s the smaller perks, such as gym membership, that are often overlooked. Needless to say, these all add up so make sure you include everything.
2. Leaving out capital losses – A lot of people fail to include capital losses in their tax return, as they believe it is not necessary because they won’t be paying any tax on a loss. However, you can carry capital losses forward, which can lead to further tax savings in the future.
3. Failing to keep everything up-to-date – You make your life so much more difficult if you do not keep track of all your finances efficiently. You will undoubtedly end up making errors, especially if you leave everything to the last minute.
4. Blurring the lines between personal and business – A lot of start-up founders experience this issue if they do not set up a business bank account. If you are using the same account for both business and personal use you can easily find yourself getting confused about your finances.
5. Inputting the incorrect amount for pension contributions – Aside from forgetting about pension contributions altogether, the most common mistake is inputting the wrong amount. Business owners often pay their pensions on a net basic rate. Make sure you know the difference between the net spend and gross spend.
6. Filing the tax return late – A lack of organisation can often lead to the tax return being filed late. If this occurs, you will be charged a penalty of £100. If the tax return is more than three-months late you will then be subject to further charges.
7. Failing to include charitable donations – When filling in your tax return you need to include any Gift Aid contributions you have made. You will get a tax refund for this, which is significant if you are a higher rate taxpayer.
8. Not using an accountant – Last but not least, undoubtedly one of the biggest errors made is failing to hire an accountant. A lot of business owners bypass this step, as they see it as an unnecessary expense. However, you could find yourself facing an even greater bill if you do not do your tax return correctly.

Hopefully you now have a better understanding of the different mistakes that are commonly made by small businesses when it comes to filing their tax return. Nevertheless, if you don’t make the final error of failing to hire an accountant, you can give yourself the best chance of making sure none of the other mistakes occur.

Biggest Tax Mistakes Made By Small Businesses
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

Latest news

Japanese Owl Meaning and Symbolism

If you're wondering about the Japanese owl meaning and symbolism in Asian cultures, the Owl, along with Maneki Neko...

What Are the Signs of Depression in Women

Gender and depression have long been the scope of research in the field of emotional disorders; most authors believe...

Top 7 Superfoods for Men to Stay Young

Superfoods are generally regarded as targeted foods that provide the maximum nutritional benefit - thus these foods are nutritionally-dense...

Best Brain foods for Kids – Boost Brain Power and Keep Sharp

A child's brain is developing rapidly and if you want them to improve their performance in school and their...

7 of the Best Brain Foods for Studying

The foods that you eat can improve the functioning of your brain. Just like drugs, foods have amino acids,...

B12 Shots for Dogs – 10 Key Benefits

The end of 2010, my little dog -- a 7-pound Papillon -- became very stressed after a flood in...

Must read

Google Maps 6.0 for Android

Where am I? What is around me? And...

Surge Protector With Long Cord Review

Nearly all non-engineering types have at best secondary...
- Advertisement -

You might also likeRELATED
Recommended to you