If you’re a contractor, freelancer or a small business, understanding the complex ins and outs of your company tax affairs is quite probably at the bottom of your company to-do list. 

When you’re self-employed, every single penny counts, from the money coming in, to the money going out. Keeping a check on your finances is a job in itself, but it is easy to see an accountant as just another expense. However, there are many good reasons why spending that bit extra to get a good accountant can actually help to grow your business in the long run. Here are some reasons why hiring accountants in North Wales for your business can actually make good sense. 

Reduce Your Tax Liability

An accountant will understand how to save you money, and be able to give good advice on the most tax efficient way of running your business. Knowing the best way in which to operate - whether that is as a self-employed or limited company - and the most tax efficient way to take money out of the business is something they will be well equipped to guide you on, based on your individual circumstances and situation. 

They will go through paying yourself through dividends, understanding what you can and can’t claim through company expenses and the benefits of using the flat rate VAT scheme.

The flat rate VAT scheme (FRS) is a government incentive which allows you to charge VAT on invoices at the standard rate (20% in 2014) but pay HMRC back at a lower percentage. A good accountant will be able to give you the best advice on whether the FRS will suit and financially benefit your business.

It Can Save you Time

When you start out working for yourself, whether it’s as a contractor, limited company owner, freelancer or consultant, your main priority is to generate business and fulfill the work you have secured. 

Having to spend time sitting down to do the paperwork, keeping apprised of what you have spent, and what is coming in can be incredibly time consuming and can result in time being taken away from the task in hand. 

Employing a qualified accountant, who is up-to-date with the latest tax laws and regulations, not to mention, one who is completely familiar with the format used by HMRC, can save you hours and hours of time, which will leave you to get on with more important business tasks. 

Help to Grow Your Business

A good accountant will be able to provide you with a great amount of advice and wisdom in helping you to grow and develop your business. Typically, when working with an accountancy firm, you will be assigned your own dedicated accountant, so from the first day you will be working with an accountant who is familiar with your business and will take pride in seeing your business succeed. 

Remove Tax Worries

It’s no secret that tax is a complex area; even HMRC’s guide to expenses is over 100 pages long, so it comes as no surprise that many small business owners often spend a lot of time worrying about their tax affairs. 

Having to remember to: prepare your end of year accounts, sort out your personal tax return, prepare corporation tax, VAT calculation submissions, liaising with HMRC, dealing with Companies House and sorting out company payroll - these can all be avoided with the appointment of the right accountant. 

Your accountant will prepare everything you need, saving you money and bringing you peace of mind, while allowing you to get on with the most important task, running your business.

Prevent you Receiving Hefty Tax Penalties & Fines

One of the key things when it comes to finances and working for yourself is keeping on top of the paperwork and avoiding any late penalty fines. For some people this is part of the job that they are happy to keep up to date with. For others, having an accountant makes sense so they don’t need to worry about looming dates, be familiar with the latest legislation and ensure that they never miss a tax deadline.

Keeping abreast of your tax submissions whether with the support of an accountant or not will help keep your company bank balance healthier by avoiding fines which can range between £150 for a day late submission of annual accounts to a whopping £1,500 fine for a six month delay.

This is just the penalties incurred if you are late submitting your annual accounts – this doesn’t include the fines if you are late, or submit your forms incorrectly for your self-assessment tax return, VAT return and corporation tax. Your accountant will keep on top of your deadlines so you don’t have to.