You don’t need a tax accountant and having one isn’t a legal requirement, but the right accountant can make a big difference to your tax bill. Lots of people take care of their own bookkeeping and business accounts, and submit tax returns without any issues.
A tax accountant will help you pay the right amount of tax – and that includes making sure you don’t pay more than you should, as well as ensuring your tax return is compliant! Accountants do the job all day long, and can see what’s going on in other businesses besides yours. This sort of insight can prove useful, especially when it comes to being more tax efficient.
Just like there are different types of business, there are different types of tax return that go with them.
The legal structure of your business determines what type of tax return you must submit.
These are used to report untaxed income so HMRC can work out how much tax you still need to pay. Sole traders, partners, and partnerships submit Self Assessment returns to declare their business profits so they can pay their income tax bill. Directors of limited companies must also complete SATRs.
As well as each individual person in the partnership completing a tax return, a Self Assessment tax return must also be submitted on behalf of the partnership itself. This will show how much profit the partnership has made, which is separate from how much the partners receive from it.
CIS tax returns are used by contractors working in the construction industry to report the details of their subcontractors’ pay, as well as the details of any tax deductions they make. Contractors then pay these deductions on to HMRC on their behalf, a bit like an employer does through PAYE.