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Why You Need a Tax Adviser or Accountant for Your Tax Return
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A tax adviser is a professional who offers tax advice on planning, compliance and basic strategies to reduce tax liabilities, they often deal with complicated tax matters. A tax accountant, in contrast, specialises in preparing, filing tax returns and ensuring accurate financial reporting to meet legal tax obligations.
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Filing a tax return involves a significant amount of paperwork and can be time-consuming. Seeking professional tax advice can help you navigate these complexities and ensure you are compliant with tax laws.
Small business owners may feel anxious about filing their returns, which can be challenging due to the complexities of business tax.
The complexity of taxes and the time required for filing can vary. Efficient tax management is crucial, and hiring a tax accountant or adviser can help reduce workload.
Let’s first examine the main difference between an accountant and a tax adviser before continuing with this article. A tax adviser helps minimise tax liabilities and explore complex laws. They specialise in tax planning and compliance.
On the other hand, an accountant keeps track of finances, creates statements, and guarantees correct bookkeeping. Accountants address more general financial management duties, whereas tax advisers concentrate on strategic tax planning.
What are the duties of a tax adviser or accountant?
An accountant will prepare a self-assessment tax return for you, requesting a detailed breakdown of your expenses and income from the most recent tax year.
The deadline for submitting an online tax return is January 31, 2025. The accountant will review your income details and determine the total amount of taxes required to pay, deducting any applicable taxes.
You can designate an accountant to access your online tax account or file a paper tax return on your behalf using the online authorization service.
By assisting you with your own tax return and ensuring tax compliance, a tax adviser helps you manage your tax affairs and tax liability.
They specialise in personal tax matters and provide a hassle-free experience, offering knowledgeable advice on how your income may affect your taxes.
Chartered Institute of Taxation members can help those with low incomes in particular, improving their financial results.
What are some of the various kinds of taxes that you may have to pay?
Here is a list of the various taxes you might be required to pay, along with an explanation of how each is determined. Individuals may have to pay tax on different types of income, including cryptocurrency, foreign income, shares, and pension income.
Understanding your tax obligations is crucial to ensure you are paying the correct amount of tax on all your income sources.
Step by Step Guide to Making an ATOL Claim
Income Tax
Income tax is levied at three different tax rates: basic (20%), higher (40%), and additional (45%).
All income over your allowance (£12,570 in the 2024–2025 tax year) is subject to basic income tax; everything over £50,270 is subject to a higher rate.
Your yearly income surpasses £125,140, and you become an additional rate taxpayer.
National Insurance
16 years of age and older are required to pay national insurance (NI), a tax that funds state benefits.
Class 1, Class 2, and Class 3 are the three primary categories of tax contributions. While self employed people may make Class 3 contributions, employed people pay Class 1 contributions through PAYE.
For those who are exempt from paying Class 1 or Class 2 contributions, Class 3 contributions are optional.
Benefits of Hiring an Accountant or Tax Adviser
Expertise in Tax Laws
Errors are common due to the complex and ever-changing tax laws and tax regulations in the United Kingdom. An accountant can help by converting confusion into clarity in this situation.
They make sure your tax return is both compliant and free of expensive mistakes, protecting you from unforeseen fines and penalties that frequently outweigh the price of their services.
Remain tax-efficient
Making the most out of your finances is a skill, and your accountant is the artist. They make sure you’re claiming all eligible expenses and benefiting from all available tax relief by carefully examining your finances.
Their knowledge frequently reveals undiscovered tax savings that provide not only tax efficiency but also the possibility of large financial gains.
Efficiency and Time-Saving
Tax preparation can take a lot of time and work. By managing the complex administrative duties and filing your return, an accountant relieves you of this burden.
This not only saves you time, but it also relieves the stress of not having to spend hours performing tiresome calculations or frantically searching through your office for documents.
Avoiding Costly Mistakes
Inaccuracies on your tax return may result in significant court fees or even a tax audit by the tax authorities. Chartered tax advisers or accountants can help you avoid these mistakes by ensuring that your return is accurate and complete.
They can also represent you in case of an audit, providing peace of mind.
Strategic Tax Planning
A chartered tax adviser can help with more than just filing your tax return. They can also assist with strategic crypto tax planning throughout the year.
By developing a tax strategy tailored to your financial situation, they can help you minimise your tax obligations and plan for the future.
Don't ever miss a deadline
An accountant diligently keeps track of all of HMRC’s important tax deadlines, much like your own personal timekeeper. They take charge and file on your behalf, making sure that all significant deadlines are fulfilled on time.
They don’t just serve as a helpful reminder.
Identify potential future cost-saving measures
An accountant is a year-round consultant as well as a helpful ally during tax season. They provide advice on how to grow your business. They will also advise you about fees-saving options and keep you updated on any changes to tax laws.
Their proactive counsel can play a pivotal role in moulding your company’s financial trajectory, transforming tax preparation into a tactical advantage for expansion and steadiness, while considering the tax implications.
How MMBA can simplify and relieve the stress of tax filing for you
Filing your self-assessment tax return can often seem like a difficult and inconvenient organisational task. But when you use MMBA, this challenging process becomes simple and stress-free.
Our tax filing process is grounded in experience, counselled by knowledge, and enhanced by a generous helping of human warmth.
Team of Experts
MMBA provides Specialized Services in Accounting & Finance with the team of highly qualified chartered accountants and tax experts.
At MMBA Accountants we have developed a range of high-quality accounting, financial and business services to give our clients the edge. We provide specialist, value driven advice and service to any size businesses.
Positive testimonials
Don’t just take our word for it; the experiences of our clients speak for themselves. With 1000+ satisfied customers, we’ve repeatedly shown that we can handle even the most difficult tax situations.
In addition to our experience, our clients appreciate our dedication to ensuring a smooth tax filing process.
Genuine, human support
At MMBA, we value real, human interaction more than most online accountants do. You’re not just another number when you work with us.
Our helpful staff provides you with individualised support and is always available to respond to your inquiries, give guidance, and assist you with any step of the tax filing process.
Contacting the Wrong Entity
Sometimes, travelers contact airlines or hotels directly instead of their travel company or the CAA. Thus, always contact your travel company first—If they cannot resolve the issue, then proceed to the CAA.
How to locate a good tax adviser?
It is important to make sure the person filing your tax return has the necessary tax expertise and legal authority to do so. You don’t want just anybody filing it. When searching for an accountant, it is advisable to inquire about the following:
- Has someone you know and trust recommended the accountant to you?
- Which associations do they belong to?
- Do they fulfil the requirements outlined by HMRC?
- Is it possible to see documentation of their indemnity insurance and a complaints procedure in case something goes wrong?
- What are the expenses and will you be informed of them beforehand?
- Are they professionals in the particular tax field you are looking for? For example, if you work for yourself as a chef, do you collaborate with other professionals in this field?
- How do they communicate with you, and is it simple to reach out to them?
Keep All Correspondence
Keep all emails, receipts, and documents related to your booking and any issues that arise; the reason is that this documentation is crucial for your claim.
Act Quickly
If your travel company collapses, act quickly. The sooner you start the claims process, the sooner you can receive your refund or replacement holiday.
Seek Help if Needed
Stay informed about the ATOL scheme and any updates. The CAA’s website is a valuable resource for information and updates on the claims process. However, you can also opt for ATOL consultation by a reputed firm, such as MMBA Accountants.
Stay Informed
If you find the claims process confusing or challenging, seek help. The CAA offers guidance, and you can also consult consumer protection organizations for assistance.
Let’s Put it all together
In conclusion, having a corporate tax adviser or accountant for your tax return is essential for ensuring accuracy and efficiency.
They help you navigate the complexities of your personal tax situation, particularly if you’re self employed, and provide peace of mind by minimising errors that could increase your tax bill.
With professional indemnity insurance, these experts safeguard your finances, ensuring you only pay what you owe. By leveraging their expertise, you avoid overpaying and ensure your tax payments are handled correctly and on time.
FAQs
When do I need to pay my tax bill?
According to UK tax legislation, your tax bill is due by January 31st following the end of the tax year for which you’re filing. This deadline applies to any remaining tax owed after accounting for any payments on account. Missing this deadline can result in penalties and interest fees, with potential tax implications for future filings. Ensuring timely payment is crucial to staying compliant with tax laws.
Do I need an accountant for my tax return?
Hiring an accountant can ensure that you don’t make any mistakes on your tax return, especially if you’re not familiar with the tax system. They’ll handle all the little things, like making sure you properly deduct business expenses. Additionally, they’ll provide you with polite reminders to help you stay on schedule and avoid missing any deadlines, which could result in fines.
Hiring an accountant can also save you time, as they will handle the majority of the work related to filing your taxes.
What is the role of a tax adviser?
Tax advisers are specialists in taxes who provide advice to clients on ways to reduce their taxable income or maximise their refunds. Tax advisers essentially conduct audits and settle tax disputes with the Internal Revenue Service (IRS) or state tax authority to make sure their clients don’t pay more in taxes than they should depending on their income level, investments, and other factors.
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