If
you are a freelancer in Canary Wharf, it will be your responsibility to report
your income and expenses to the tax authorities. That means declaring such
information on your Self Assessment tax return - which poses a surprising
number of problems to many of the self-employed. With freelance life also
meaning none of the holidays and sick pay that the employed enjoy, the onus
really is on you to make good use of the free time that you have to keep your
tax affairs in order.
Although
there are many Canary
Wharf accounting firms that can help freelancers in the area to keep on top
of their tax obligations, giving tips on how to save tax while remaining in
compliance with all of the important legislation, it is important not to be
lulled into a false sense of security by this relationship. Ultimately, the
responsibility for keeping records and filing tax returns that appropriately
report your accounts, lies with you and you alone. Neither your bookkeeper, nor
your accountant, nor anybody else is responsible for ensuring that your paperwork
or accounting calculations are immaculate.
One
reason why it's so important for the clients of Canary Wharf accounting firms
to know that the buck stops with them, is that an Inland Revenue enquiry is
highly inevitable, sooner or later. When the taxman examines your tax return
and accounts, they should see that the right amount of profit has been
declared, and accordingly, the right amount of tax paid. Enquiries can be
stressful, and they will be so much more so if your tax records are
disorganised and don't immediately and clearly back up what you have stated on
your tax return. Instead, store your invoices and receipts neatly and in good
order.
If
you've already spent some time as a freelancer or contractor, you might already
be waist-deep in your work and growing your business - so take the time right
at the start to ensure the good organisation of your vital paperwork. Research
the various elements of tax law, determining which ones apply to you and your
situation. The Inland Revenue website is one obvious place to look for
information, while Canary Wharf accounting firms may also be able to provide
limited free advice.
You'll
feel so much less anxious whenever the next Self Assessment deadline nears, if
you are in full control of your paperwork and aware of your specific
responsibilities, rather than having to make sense of a heap of disorganised
data and paperwork, dating back a year. Look at the actual Self Assessment tax
return that you will need to complete, identify the relevant parts to you and
ensure that your records have been kept in a corresponding fashion, well ahead
of the deadline. It all means that you spend so much more time on your core
business, rather than furiously calling Canary Wharf accounting firms at the
last moment before a deadline.
Editor’s
Note: Freelancer Accounting (http://www.freelanceraccounting.com)
are represented by the search engine advertising and digital marketing
specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk
or call: +44
(0)20 3070 1959 / +34
952 783 637.
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