Overpaying your tax as a business can be a tricky issue to resolve. There are time limits in place when applying for a rebate, so you’ll need to ensure that you’re on the ball and can identify issues as soon as possible. You’ll need to know precisely what you should be paying in tax, how to apply for a rebate and see if you qualify for things like tax relief to ensure you’re not paying certain taxes unnecessarily.
It is a good idea to have a professional accountant on your books at all times, as they will be best placed to identify any issues in the amount you’re paying in taxes. You should also understand your tax obligations for yourself, so you can keep track of the taxes you pay.
Use A Tax Calculator
A great first step if you suspect that you’re overpaying on your taxes is to use one of the government’s tax calculators. This should give you the closest estimate in regards to how much you should be paying in tax. If there is a significant difference between what is calculated and what you pay, you should start looking into this immediately and have someone on your finance team or an independent accountant check the figures.
Review Your Tax Return Carefully
If there is an issue with your tax return, you will need to make a correction within 12 months of filing your tax returns. If you notice an error in your tax return, you should inform HMRC as soon as possible, providing details of your business and the error so that they can rectify the mistake in good time. You should keep hold of any documents and correspondence between you and HMRC in a safe place in case of a dispute.
Hire A Specialist Corporate Tax Accountant
Corporate tax is one of the most complex parts of tax for a business, and as such, it is a good idea to hire a specialist in corporate tax to ensure you’re paying the right amount. You’ll need a highly experienced and competent corporate tax accountant who can make sense of the complex financial rules around corporate tax. Lumbview Accounts are a prime example of what businesses should look for in a corporate tax accountant.
Check If Your Qualify For Tax Relief
Many businesses qualify for tax relief under government schemes. Qualifying for these may depend on your business type, such as business in a creative industry. Others can help a company if they plan to acquire assets like vehicles or business premises. You should check carefully if you could qualify for taxes like these, as they can be a huge benefit to business profitability.
Conclusion
Paying too much in taxes can leave businesses in an undesirable position, cutting into their profits and making it harder for growth. It is crucial to find out in good time if you are paying the correct amount in taxes, and you should ensure that you continue to pay the right amount throughout the lifespan of your business. Hiring an accountant and educating yourself on your rights and obligations are crucial to help ensure you pay the correct amount of tax.
