When you’re self employed or own a small business, you often have to pile on responsibilities and take care of everything from running the business, dealing with paperwork and make sure your taxes are in order. It can get tricky as you’re trying to keep up with everything instead of focussing on running and growing your business.
Luckily, there are a few things small business owners or self-employed individuals can do to make their taxes easier.
Making Tax Digital scheme
The UK government’s Making Tax Digital scheme has been rolling out since 2018 and several changes have been put in place in order to streamline taxes for businesses. By being able to sort income tax, national insurance, VAT and soon corporation tax digitally, you’re not only saving on paper, but the processes are a lot easier to understand and will save individuals a lot of time.
By switching the system to a digital platform, it means all your changes will instantly be communicated to HMRC, instead of having to tediously submit your details and wait for the change to be effective. Businesses and self-employed individuals will also be able to keep an eye on the status of their tax contributions.
Tools to make your life easier
One of the best-known tools to deal with all your financial needs is Quickbooks – it’s a one-stop shop that allows you to keep track of bills and expenses, manage your revenue from sales and even pay your employees with a payroll feature.
It’s a gain of time that’s not negligible for small businesses, as using such software means you don’t have to sort through receipts, bills, paperwork or invoices. The process is a lot easier and managed all in one place, that you can access from mobile devices and desktops.
Getting help when you need
When you’re trying to get to grips with a new piece of technology or software, it can get a bit of time getting used to new processes. Some business owners and self-employed workers can find it helpful to get external help in order to comply with new law requirements, make sure that everything is as streamlined as possible and understand how to efficiently use tools that are available.
Nowadays, accountants can do more than just deal with your payroll or VAT – they can be digital tax consultants that can advise your business on the whole and support you during changes such as these, and train you to use tools such as Quickbooks, Receipt Bank or Xero for example. If you’re searching for someone able to advise you on the Making Tax Digital scheme, look out for the “Making Tax Digital ProAdvisor” logo!
Whatever software you’re looking to use, make sure you get everything in place to comply with new requirements – and make your life easier so you can focus on what matters: running your business! Don’t hesitate to keep up to date with the latest developments, but in doubt it never hurts to ask for expert help when you need it.