6th October 2020
Do you feel like your accountant is targeting you, e-mails are coming in and missed calls appear on your phone? There is a reason and probably a good one for this, so let us tell you the other side of the story.
Reason No. 1: There is a payment deadline approaching, or you have already missed one.
Yes, there is a good chance that the e-mail you brushed aside to deal with later is now catching up with you. Your accountant is desperately trying to warn you to make a payment to avoid being penalised. It could be either one of the following:
If your company is VAT registered, payments of VAT are due within a month and seven days after your business’s VAT quarter has ended. VAT periods are determined by your company’s VAT quarters outlined in your registration certificate.
If you run payroll above a certain level, you will have to pay the tax and NI deducted from your employees to HMRC every quarter. The dates these are due are the following:
Q1 – 19th July Q2 – 19th October Q3 – 19th January Q4 – 19th April
Corporation tax is due nine months and one day after the company’s year-end date. Here at MyAccountant, we remind our clients two or three times at least, because nine months is such a long period, it is often forgotten. You may want to pay this early and let your company earn some interest.
Usually paid in two instalments, depending on the size of the liability. The first payment on account is due 31 January (same day as the electronic filing of your tax return) and the second on the 31 July.
Reason No. 2: Your records are incomplete or not up to date
Ok, we get it, you are super busy doing what you do best and once you get home after a long day, updating your accounting records is the last thing you want to do. Remember, however, you are now responsible for the wellbeing of your company, and hired your accountant to help you along the way, so they are only trying to do their job. Here are the benefits of keeping your records up to date:
Up to date records enable your accountant to report on the financial position of your company regarding profits, taxes and available dividends. It gives a review of how the company is performing and note on possible issues arising.
This is an end of year report required by HMRC, so there is a penalty missing this one. Also, there is interest to be earned if you pay your corporation tax early (strangely this is often better than bank interest), plus you get to end the flow of reminder e-mails coming from your accountant, how nice!
We touched on this briefly in point one; there are a deadline and penalties for missing this one, so your accountant is trying to do this ASAP to ensure you don’t get hit with a fine.
The more up to date your records are, the better equipped your accountant to advise you on how to be more tax-efficient throughout the year.
While reviewing your info, your accountant is likely to pick up any mistakes in your expenses or bring to your attention. Say, for example, you are not being paid accurately by your client.
If you are a contractor, it’s highly likely you will need to submit a Self Assessment Tax Return. Send your personal income records to your accountant in time, and get this out of the way early. No more rushing in January to get this done. At MyAccountant it is cheaper if you do it early so what’s not to like?
In summary, please remember your accountant is not trying to be an annoyance. They are there to make your life easier and to try to save you tax, provide advice and make you aware of anything that is important to you. Get your money’s worth, keep them on their toes and let them work for you.
For more information about MyAccountant and what we can do for you, e-mail us at firstname.lastname@example.org or call 0800 917 9100.