HMRC needs to have received your completed tax return by 31 October for paper returns, and 31 January for online submissions. If you miss the deadline, you will automatically be charged £100. If your tax return is not filed within a day of missing the deadline, the potential fines that you can be charged increase substantially.
The difference between cash and accruals basis is basically timing, revolving around when you record your revenue and expenses. If you do it when you pay or receive money, then you are using cash basis accounting. If you do it when you raise an invoice or receive a bill, you are using accrual basis accounting.
Once your business gets to a level where you are starting to hire employees, it is critical that you master the art of payroll sooner rather than later. It doesn’t matter how wonderful your workplace environment is; if people aren’t getting paid they won’t be happy, and slipping up on your obligations to HMRC can land you in hot water as well.
Since it's inception VAT has been a challenging tax for small businesses to administer. Keeping track of every last penny charged to customers and spent with suppliers in order to correctly complete a VAT return is a time consuming exercise that is fraught with the potential of making costly mistakes. That was until the Flat Rate VAT scheme came along, could it save you money and time?
Perfecting a process where you can issue invoices on time and accurately, and get them paid quickly, is one of the basic priorities of all businesses. Modern technology does most of the heavy lifting for you in this, but there are some tips and tricks in this article that will help ensure that this facet of your business runs smoothly and is as worry free as possible.