Setting up as a sole trader is a quick and easy way to start up in business and requires the least cost, as there are no legal or formal processes in getting started. This means that you’re in complete control of your business and the profits you make are yours. This also means you’re solely responsible for debts and liabilities. Glenfield Tax Accountants can show you the best way to manage your income and offer advice on protecting your business.
Filing your first Tax Return
In your first year of trading, you don’t file an income tax return until after the end of the tax year. However you will need to take advice on managing your cash flow and ensuring you have funds available to pay your first tax bill when it arrives, easing cash flow in your second year.
Why is a Business Plan Important?
Glenfield Tax Accountants can put a simple business plan together for you, which eliminates the stress of having to think about your tax obligations. Very few successful small businesses function without a professional accounting firm guiding them. On your own, you’re unlikely to be aware of all aspects of the tax system. It is definitely beneficial to choose an accounting firm that deals primarily with small to medium businesses, and has the understanding of what’s involved in starting out as a sole trader. Give our friendly team a to discuss your business requirements.
Unpaid Taxes – How Serious Is It?
Leaving taxes unpaid is serious business and can result in costing you a lot of money. It is crucial that you resolve the issue as quickly as possible to avoid penalties and interest on late tax payments and tax returns. It only takes a short amount of time for tax debt to get completely out of control.
Are Issues around Unpaid Tax Payments Solvable with IRD?
In most cases they definitely are. The resolutions we bring about almost invariably bring huge relief to our clients and are resolutions our clients would not have thought were in the realm of possibility. Without a doubt, the penalties and interest IRD imposes on late payments of tax arrears are vicious. However if IRD did not enforce these penalties, large numbers of people would not pay their taxes, and if they did not charge interest that was higher than the banks, people would use IRD as a bank. For instance, if people like property developers could have the use of money they should have paid to IRD for overdue taxes, at a lower rate than what the bank would charge them, then they would use IRD’s money. If you need advice on sorting any overdue payments, call our team for a free assessment.