Online Filing
Introduction
Most Government and Tax Returns can now be done online. For some businesses this is compulsory, for others it will be soon.
Business On line Filing is fairly straightforward to set up, and can save money on Accounting fees.
Please note that if you choose to use Online Filing for businesses, you are taking responsibility back on yourself for these returns. This is ok and can save a lot of money - but if you get it wrong there could be consequences, for example fines and penalties.
With a little training and help in the first year, there is a good chance that you will become comfortable with Online Filing and save yourself some money.
Ainsworth Accountants understand the need to save on Accountanting and Tax fees. We will advise and train you if required, then leave you to it for future years.
Here are the Online Filing details for most UK businesses:
Self Assessment
Online Self Assessment is part of the Online Tax Return process for individuals - it's just one of the pages which you fill in - along with the other usual things like employment, pensions, dividends and allowances claims.
If you haven't used a government online service for individuals, you need to register for Self Assessment Online, receive a 'User ID' and then wait to receive an 'Activation Code' (also known as Activation PIN). This is sent to you by the Government Gateway (the central registration service for online government services) through the post.
PAYE
All these forms can now be submitted online: P35, P14, P45, P46 and P11D.
It is already compulsory to file P35/P14 online if you have more than 50 employees – but did you know it is becoming compulsory for all business for 2009-2010?
VAT
Filing VAT Returns Online has been around for some time, and of course you can also pay the VAT due via online banking.
However, HM Revenue & Customs (HMRC) plans to phase out paper VAT Returns from April 2010. After that date, if your turnover is over £100,000 - or if you are newly VAT registered - you will have to submit your return online and pay VAT electronically.
Compared to receiving a return form in the post, filling it in by hand and posting it to HMRC, submitting a return online has a number of significant benefits.
The process is very straight forward - the online form is very similar to the regular VAT 100 - and of course there is an online help facility.
Limited Companies - "Small Companies"
This is a broad guide - not legal advice - always check with Companies House for up to date regulations.
"
Small Companies" are exempt from audit and can file much simpler Accounts at Companies House.
Better still - Accounts can be filed online - by yourself.
So do you still need an Accountant? Legally, no - "Small Companies" can file their own Accounts - but they still need to comply with the Companies Acts - which aren't exactly bedtime reading.
The format and layout of the Accounts is done for you by the online system, but you still need to get the figures right before you start. Realistically, most businesses will need the help of an Accountant at some stage, but maybe in a different way than previously.
Have you considered how valuable the Accounts are to you - the information contained in them - and the decisions you could and should be making?
Our business model is to teach and encourage businesses to keep good records throughout the year – for their own benefit – and make the year end process cheaper and quicker.
Corporation Tax
Corporation Tax can be a beast.
If your business is simple, and you know the basics like
Fixed Assets / Capital Allowances, Interest Receivable and treatment of Entertainment, you might just be able to file Online, but it is very risky - there is a lot to get wrong.