The Value of a Tax Consultant for Small Businesses
When most entrepreneurs get started in business, the one thing that they probably aren’t excited about is taxation.
The world of tax, for business, can seem arcane and intimidating. Get it wrong, and you could end up paying over the odds – or you could end up facing penalties.
Having a plan in place to deal with your tax often means bringing in a third-party expert, called a tax consultant. This might allow you to avoid mistakes, while making sense of your obligations.
Let’s take a look at some of the main benefits of working with a tax consultant.
Understanding Complex Tax Regulations
The law around tax can be complex. Sometimes, it can change without warning.
Small businesses in particular might struggle to react to sudden changes, or to spot opportunities for optimisation. After all, budget announcements are not always easy to understand.
The right tax consultant will have an extensive knowledge of tax and how it works, legally speaking. They’ll advise you when it’s time to make adjustments.
Maximising Deductions and Credits
In some cases, there might be specific deductions that you can make. But if you don’t know about these, it’s impossible to take advantage of them.
For example, you might claim for expenses you incur as a result of investment in equipment. A tax consultant might be able to tell you when these claims are warranted.
Tax Planning for Future Growth
If you have a plan in place to deal with tax in the most efficient possible way, then you’ll stand a much better chance of growing and developing the business.
When you’re taken by surprise by an unexpectedly high tax bill, your plans for growth might be thwarted – but a consultant will help to ensure that you’re aware of what’s coming, and that you have planned for it.
Audit Preparation and Defense
In some cases, your business might audited by HMRC. Audits come in many different types.
Some are triggered by suspicious activity, and involve a top-to-bottom examination of an entire company.
Others are more limited. A random check might be conducted, just to check that your accounts look in order.
A consultant will help you to prepare for these events. More than that, they will support you while the examination is ongoing.
Saving Time and Reducing Stress
As a business owner, you might wish to focus your attention and energy on actually running the business.
Tax worries might be a distraction that you can’t afford. With the help of a consultant, you’ll be able to put these concerns out of your mind, and focus your creativity on where you are really needed: actually keeping the business going.
