Tax being a very sensitive matter many people find completing and filing tax returns to be daunting tasks. Although HMRC has tried to make the process quite simple for tax return filing. The tax forms with many boxes are still intimidating to many. Once you know what to fill in, the task becomes easier.
But for this, you need time and also knowledge of tax matters. Therefore, it is wise to outsource tax returns process and filing to professionals to make certain that your tax returns are correct and you pay the legal minimum tax bills.
In the UK, the tax returns that you normally may have to file are:
- Self-Assessment Tax Return:
This is the return that you may have to file to report your individual earned and unearned income viz. employment, dividend, self-employment, partnership, property income, interest received, pension received, capital gains, etc. Based on the income tax calculation you pay the tax bill to HMRC.
- Partnership Tax Return:
This you have to file if you are running a partnership business. The partnership tax return (SA800) must be filed to HMRC along with the partners’ self-assessment tax returns (SA100), where they need to show their income from the partnership business and pay tax on it if any.
- Corporation Tax Return:
If you are running a company then file this through your company.
- VAT:
If you are VAT registered then you need to file quarterly VAT returns through HMRC’s Making Tax Digital scheme.
Why is it important to process and file correct tax returns?
In simple words, we can say that tax returns are the systems through which you submit details of your income, business purchase/sales (VAT), and company profit (corporation tax) and pay taxes if applicable. Therefore, you should file correct tax returns correctly in the order you give a true and fair picture of your income and pay the right tax bills.
If you make mistakes or there are errors on your tax returns then HMRC will charge penalties which can be 100% of tax.
How Outsourcing Tax Return Process Ensures Correct Tax Return Filings:
There are a couple of aspects that you need to consider while filling out tax return forms whether you are doing it online or offline.
- What to report:
Although there are many boxes on tax return forms, it is not mandatory to fill out all of them. Based on your individual/business income sources you are required to fill in the right boxes of your self-assessment and Partnership Tax Returns. Similarly, on corporation tax return things may differ based on the nature of trades.
- Claim the accurate expenses and allowances:
This aspect of processing tax returns requires experience and up-to-date knowledge. By claiming the correct expenses and allowances you can make sure that you pay the minimum tax bills.
- Eliminate mistakes and errors:
Whether unintentionally or deliberately done, if there is a mistake or errors on tax returns then you may end up paying penalties and interests. But adept tax specialists can ensure that tax returns are processed properly and as per HMRC guidelines to avoid any discrepancies.
- Communication with HMRC:
It is one of the important aspects, you cannot afford to delay or ignore any communication with HMRC whether it is standard or relating any tax investigation. Therefore, correct tax advice and help are must to handle the compliance with HMRC.
Further, meeting the tax return filing deadlines is also very important. This is one concern that many business owners and individuals have while they are busy with business operations or personal work. Needless to say that you may pay penalties if you miss out on the deadlines. This is where a tax return process outsourcing firm with required systems in place can ensure that your tax returns are always filed on time.
So, the bottom line is you must get your tax returns correct. And we at Doshi Outsourcing with years of experience in handling UK tax returns and compliances can promise that your tax returns whether personal or company tax returns will be dealt with 100% accuracy and you will pay the correct legal minimum taxes.
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