When it comes to the time your tax return is due and the deadline is fast approaching, it can be a frantic dash to the accountants with bags of receipts. Your accountant will not thank for this! However if you are filing taxes online for free then you will still need the same documentation. To make life easier for both you and your accountant, here are the records they will need to create your accounts and tax return:
Accounts – Your accountant will require all business account statements for the entire tax period, which lasts from April 6 the previous year. You most likely have a primary account, but if you also have a backup or a deposit account, they’ll need a statement for them as well, to follow every move between accounts.
Statements of any loans you have will also be required. It’s worth getting the balance at the end of the year as interest is tax deductible. For help from Accountants Swindon, visit Chippendale & Clark.
Reports for each business credit card is also required. If you have a personal credit card that you have used for business expenses, then do not forget to include this information as well.
Financial agreements made in the tax period also need to be disclosed to your accountant. This can include hire purchase, for example. Mortgage interest is counted as tax deductible and anything you have purchased can also be included in your yearly investment allowance. If you don’t include it, you can add hundreds to your tax bill unnecessarily.
Payroll records should be supplied to your accountant, unless they also do your payroll for you. Sales revenue is another must. You must include all invoices for this year, paid or not.
Purchase invoices and receipts for costs must be provided as you don’t want to rely on conjecture as you could end up paying more than you need to. Petty cash receipts are also required.
Tax returns – For all jobs that you have been working, you’ll have to supply a P60 or P45.
You also need to dig up information on payments made to private pensions. Bank interest received during the year, not including ISAs should also be included and do not forget your savings account as well.
Dividends received, no matter how small must also be stated. Any rental income you receive, and the loan interest is also included.
You also must declare any other income you received during the tax year in question. This could include selling of rental property, engaging in entrepreneurial activity or the sale of shares.
As you can see, there is a great deal of information that needs to be provided to your accountant so that they can take care of your tax responsibilities efficiently and comprehensively. There is simply too much work for most small businesses or sole traders to cope with, so having an accountant take care of it is a smart move, saving business owners a lot of time and hassle.