Bookkeeping and vat: Bookkeeping is the procedure of maintaining cash receipts and payments or flow of cash in your small venture. This practice involves recording all financial transactions in your business, including expenses such as materials, services, payroll, and income, like customer or client payments for goods and services. Bookkeeping is an essential operation in your business for both legal and financial management purposes.
VAT or Value Added Tax is a tax collected at any point of time a value is added to a product or service. Businesses pay VAT to HMRC when they sell or hire out their goods or services. VAT applies to consumer and business sales revenue. VAT is a consumption tax. Therefore, it’s paid by the customer rather than the business that sells the product or service. This makes it an indirect tax.
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Self-assessment tax returns: It is essential to consider that after a taxpayer has paid their advance amount and if there are any taxes pending that need to be paid after the end of the financial accounting year, they have to be paid as what is known as self-assessment tax.
The person who pays tax before filing their income tax return must submit the self-assessment tax return. In the case of employed taxpayers, the fee is estimated and decided on behalf of the taxpayer by the employer. Suppose a taxpayer is responsible for paying self-assessment tax returns. In that case, they will not be able to file their gains or income tax returns unless they have paid the self-assessment tax returns. The self-assessment tax needs to be measured by the taxpayer on their terms, and after that, it has to be evened out with the Government. There are several ways a taxpayer can settle their self-assessment tax returns, which can be executed both offline and digitally. Both the procedures must be carefully followed, as any discrepancy can lead to significant issues in the return form and processing.
Construction Industry Scheme: The Construction Industry Scheme (CIS) is an HMRC scheme that can affect you if a contractor in the construction sector employs you but not as a worker, such as a self-employed person. The CIS rules imply that the contractor is typically responsible for detaining tax on its payments to you, at a rate of 20% if you are ‘registered’ or 30% if you are not.
The CIS covers excess of what you may typically think of as building and civil engineering work. For example, it includes work in demolition, site clearing, repairs and decorating, and installing power systems. The HMRC CIS manual details what work is included within the Construction Industry Scheme.
EFJ Consulting takes care of all your taxation needs and queries and delivers the best fit solution. All the services mentioned above, such as Bookkeeping and vat, self-assessment tax returns, etc., are catered by them with efficiency and absolute professionalism, making them the best accounting support in Bexleyheath. You know what to do next!
