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The Taxman Is Not Patient & Mistakes Do Happen

A few years back HMRC themselves in one year admitted that almost 5M people paid the wrong tax under PAYE. This was due mainly to incorrect tax codes.

Additionally tax evasion & agressive or abusive tax avoidence is taken very seriously by HMRC and criminal proceedings can follow for the most serious cases.

HMRC have wide ranging powers.

The penalty regime in many cases is harsh for late filings and mistakes. You MUST get your tax affairs in order from day one.

If you are a self- employed sole trader you have to register with HMRC, if you are a limited company likewise for corporation tax and payroll.

If your business is above the VAT threshold you also need to register for VAT.

You need to maintain records proper financial records enough for the tax authorities. There are many example of HMRC investigating and this is not a pleasant experience if you are on the receiving end of an investigation. You will not have any defence if you cannot produce the evidence and a proper paper trail.

The tax code is not logical and there are literally thousands of allowances that can be used to reduce your tax bill, but unless you are an expert you cannot possible know them all.

There is good news though and an easy solution.

TALK TO A GOOD ACCOUNTANT

The key points are:

  • Talk with your accountant first
  • Register your business for all necessary taxes
  • Keep proper financial records and a paper trail
  • Don’t file things late or you will get a hefty fine

There are many ways to legitimately save tax. Find an expert in taxation and tax planning service that will help you through the maze so you pay as little as possible. Your tax savings could be considerable.

Disclaimer:

Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645). This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content.Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.