What are the benefits of using a Corporation Tax advisor?
Tax returns can be a stressful burden and that’s why you can outsource the task to an expert advisor, but is it really worth the investment, or can you do the job just as well yourself?
What are the benefits of using a corporation tax advisor?
If your business is registered with Companies House, you have an obligation to submit a tax return on an annual basis – but is it really worth engaging the services of a corporation tax advisor? Or can you do the job just as well yourself?
Like any legal obligations when running a limited company, calculating and filing your corporation tax return can be complex. You need to ensure you’ve been keeping accurate records to help you gather the information you need, and there are many other considerations too.
For larger companies with a professional in-house accounting team, tackling your corporation tax return internally probably makes sense. However, if the responsibility falls on you as the business owner or manager, there are several reasons to think about outsourcing this tricky task to an external advisor. Possibly highest on your list of priorities will be your keen desire to stay on the right side of HMRC.
Reasons to use a corporation tax advisor for your annual return
Here are five benefits of getting professional advice for your corporation tax return.
Save time:
Your to-do list is probably long enough without adding a complex task like this. The Making Tax Digital rules give HMRC more access to your ongoing position, so it’s more important than ever to ensure your details are correct. Using a tax advisor will save you time and worry.
Avoid costly errors
A tax advisor understands each element of the return and will make the process feel much smoother, whilst also giving you confidence that the return has been completed correctly. Your corporation tax computation needs to take into account a number of items, which is where things can get a little difficult for those without much experience, such as:
- Disallowable expenditure
- Capital allowances
- Chargeable gains
- Loan relationships
Keep up-to-date with reporting rules:
You have a legal obligation to abide by the rules and a tax advisor will know all the latest rates, allowances and reporting duties.
Maximise your savings
An expert tax advisor will ensure that you are claiming the maximum reliefs available to you whilst staying on the right side of HMRC.
Benefit from additional financial insights
A good tax accountant won’t just stop at filling in the figures, they’ll also be able to use the calculations to provide additional guidance to your business. This could include opportunities for savings, re-structuring or growth, helping you to make your business more financially efficient.
It’s important to note, however, that engaging a tax advisor doesn’t absolve you from responsibility. Your accountant’s job is to talk you through everything they’ve done during the preparation of your tax return, ensuring you understand everything before you sign it off ready for submission. Therefore, responsibility for accuracy falls equally on both parties.
Our Head of Tax, Jamie Kelly, is hosting free Friday Tax Clinics. To book a 30 minute appointment to discuss any business or personal tax matter, from Inheritance Tax to Corporation Tax and beyond, please email Jamie.kelly@parsons.co.uk or call us on 01924 669 500.
