Tax Tips

VAT Registration - You must check your requirement to register for VAT at the end of every month, to ensure that your annual turnover has not exceeded the registration limit currently £68,000 from 1st May 2009, (previously £61,000 after 31st March 2006).

Self-Employed - If you are self-employed and your gross turnover is less than £30,000 per year, you only need to show your total turnover, less total expenses and net profit on the tax return. However, you should still keep detailed records should H M Revenue & Customs require them.

Keeping Records - You must retain records relating to your business for at least 5 years and 10 months after the end of the tax year to which they relate. Failure to do so may result in penalties of up to £3000 per tax year

New Business - You need to register with H M Revenue & Customs to notify them of your new business within 3 months of starting otherwise you will be liable to a penalty of £100. If you don`t get a tax return you are required to notify H M Revenue & Customs that you have taxable profits by 5th October following the tax year end of 5th April.