When an accountant conducts a tax review on your behalf, it is more than a quick look through your accounts to see if everything is okay.
Checking Income and Expense Records
The accurate disclosure of all income from bank statements and invoices and all expenses incurred properly categorised and accounted for.
Identifying Missed Deductions
Allowing for the fact that a small business might not have claimed certain expenses for work carried out from home, equipment purchased or even subscriptions to trade publications, an accountant will highlight all allowable deductions and ensure that maximum benefit is gained.
Reconciling Figures Against HMRC Records
It’s also very important that the records that you hold as a business also match the information that HMRC holds for you. In a tax review a professional accountant would follow a structured process to identify any differences found between the two.
Spotting Errors Before Submission
Inexactly entered figures or incorrectly classified expenses can lead to HMRC queries when submitted to them.
Flagging Opportunities for the Year Ahead
Some accountants will also use your tax review to consider your tax planning needs for the forthcoming year and may identify alternative strategies to reduce your tax liability, such as adjusting your salary and/or dividends, changing the timing of purchases, or even a restructure of your business to adopt a more tax efficient cost structure.
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A tax review can save you money and lots of problems if done properly.
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