Taxes, payrolls and returns
As you can imagine, a business, no matter what its size, will have to pay taxes. This means that it is important, from day one, to keep correct and detailed records ― not only of your sales or income, but also of your expenditures. If you are a small business with no employees, it is possible to do your record keeping, but be meticulous about it. Set aside time every day or week to keep your records up to date. Small businesses can quickly get into problems if records are sloppy or inaccurate. If you have to charge or remit VAT, if your business is selling goods or services, ensure you check out the following VAT information.
If you have employees, then payroll is going to be an important aspect of your business. Many accounting firms and specialist payroll firms can help with payroll, if you feel it is beyond your capability. They charge a fee and make sure employees are paid and the proper taxes/PAYE and National Insurance payments are deducted from their salaries. HMRC offers free payroll software.
The UK government is continuously working to lessen the paperwork for small businesses and most tax forms and tax submissions can now be made online. This helps when it comes to dealing with VAT, business taxes and National Insurance payments. Also, keep in mind that there are plenty of tax credits and allowances for small businesses and that you may qualify for. Check out HMRC website for more details.
