Everything you Need to Know About the Tax Accounting Services

Posted by Amit Gupta on November 27th, 2019

Tax accountingfocuses on tax payments and returns rather than preparing for public financial statements. The kind of return of tax you should submit depends upon the nature of business and whether you are registered for the VAT or not. You can either take the responsibility on your own for tax returns or consider finding the accountant who would help you. The tax accountant Londoncan help you to calculate how much tax you should pay, how to finance the future tax payments and which methods of tax accounting work best for the business.

Self-Assessment and Tax Accounting:

For pensioners and employees, income tax is normally taken out of the pensions and wages automatically. However, if you are self-employed or meet the certain criteria, you would have to file for self-assessment tax return.

For sole traders and partnerships, there are some of the records you must keep in order to complete the self-assessment, which include:

•          Expenses
•          Income and sales
•          PAYE records
•          VAT records

The records can be kept for a minimum of five years and you might need to submit the extra information if you are using the accrual accounting – including the inventory at the end of the accounting period.

Corporation Tax and Tax accounting:

If the business is liable for corporation tax, you must consult the tax accountant Londonto submit a company tax return to HMRC at the accounting period end. While sending the return, you would have to calculate:

•          How much you have to pay for Corporation Tax Bill
•          How much loss or profit you made regarding the Corporation Tax

Even if you don’t have the Corporation Tax to pay, it is still essential to submit the Company Tax Return, Partnerships and sole traders don’t need to submit it as they have the eligibility for self-assessment.

VAT and Tax accounting:

If the business has the registration for VAT, you would have to file the VAT return with the help of tax accountant London to calculate how much you own or how much to reimburse. By different ways you can account for VAT, which include:

•          Cash Accounting
•          Standard Accounting Scheme
•          Annual Accounting
•          Flat Rate

If you are VAT registered, it is essential to submit the VAT return on top of other returns. It is also essential to consider VAT while submitting Company Tax Returns and Self-Assessments.

About the Author:

Amit Gupta, Director, Allenby Accountants.

Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.