This is a question too difficult for a mathematician. It should be asked of a philosopher” (Albert Einstein when asked about completing his income tax form)”
There are so many different aspects to think about and probably the easiest part of Tax is registering – but then it gets complicated. Take for example VAT. Once you’ve registered do you know when you have to start charging VAT to your customers? Or when do you have to send your tax returns to HM Revenue & Customs?
Do you know which goods are charged at 20% compared to those that are charged at 5%, 0% or are exempt? Believe me there is a very long list of exemptions. And if that doesn’t sound like hard work there are pages of clauses and legislation you must abide by – do you know which ones apply to you?
Or take the various tax dates. Do you know if the timing of payment of Capital Gains Tax is based on exchange of contracts or on completion; or do you know why the tax year for personal tax ends on 5th April or when you have to pay Corporation Tax?
It is all complicated and confusing, very often for simple reasons, but still you need to put your head around all these tax issues. Like most taxes we have a duty to pay so on this occasion I’m going to suggest you seek professional help from a qualified accountant – I’m not trying to toot my own horn here but its common sense if you’re running a business.
They know the rules and can simply make your life so much easier – and trust me when I say they understand Tax & VAT much better than you, it’s their job to know.
If you like the way we think – you will like the way we work.
AIMS Accountants for Business are the largest independent association of professionally qualified accountants in the UK specialising in accountancy for small, local and independent businesses. AIMS are no ordinary accountants and we are more than just number crunchers!