In Tax

If You Want to Save Tax – Get the Basics Right First

Posted by: on Nov 1, 2010 | No Comments

It is amazing how many businesses put at risk their tax allowable expenses by simply losing invoices and receipts. Where invoices and receipts are missing HMRC may disallow the relevant expenses. HMRC tax penalties have been significantly increased in recent times, at worse case penalties up to 100% of the value of tax avoided.

Accountants can help by making estimates of expenditure based on industry standards. Under these circumstances a disclosure is usually made in the white space on the tax return which may increase the chance of an enquiry.

All business owners and staff should locate a box file, folder, or even just a large envelope in a prominent position in the office such that when opening the post, or returning from a business trip all invoices, receipts, and bank statements are stored safely ready for bookkeeping and filing.

I know this is really basic stuff but please help us help you claim all of your tax allowances.