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: A payment deadline is 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 business is VAT registered, VAT payments are due within a month and seven days after your business’s VAT quarter has ended. VAT periods are determined by the 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 the account is due on 31 January (the same day as the electronic filing of your tax return), and the second is on 31 July.
Reason No. 2: Your records are incomplete or not up to date
Ok, we get it; you are 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 well-being of your business 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 your business’s financial position regarding profits, taxes and available dividends. It reviews how the business is performing and notes possible issues arising.
Year-End Accounts & Corporation Tax
HMRC requires this end-of-year report, so there is a penalty for 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 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.
While reviewing your info, your accountant will likely pick up any mistakes in your expenses or bring them to your attention. Say, for example, you are not being paid accurately by your client.
You will likely need to submit a Self Assessment Tax Return if you run a business. Send your personal income records to your accountant quickly, and get this out of the way early. No more rushing in January to get this done.
In summary, please remember your accountant is not trying to be an annoyance. They are there to do the job you asked them to do, so 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.