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Paying tax is something well over half of adults in the UK do.
If you are someone who personally submits your tax returns every year and is wondering how this process can become more efficient, and better for your bank balance, then the team at Blue Rocket Accounting are here to help you.
Submitting your tax returns alone can be a tough task, and you may end up with big problems on your hands if you don’t do it right.
One popular solution is hiring an accountant to do it for you.
But what are the benefits of this? And would it help you?
Let’s find out.
What Are Personal Tax Returns?
A good place to start is with what exactly personal tax returns are.
While well over half of all adults in the UK pay income tax, in many cases this is handled by our employer and automatically removed from our payslips.
Personal tax returns are when this isn’t the case, and you have to submit your income and financial figures to HMRC yourself.
On your personal tax return form will be your annual income, capital gains, and more, as you provide an overview of how much money you earnt across the last twelve months.
This figure is then assessed and the amount of tax you should have paid is calculated. This can sometimes lead to extra payments or refunds if you have paid too much.
Making sure you submit your personal tax returns in the correct way is vital, and if done wrong, can lead to major issues that are time-consuming and costly.
This is why many people turn to a professional to help, and here are seven reasons why this is a good idea.
7 Ways an Accountant Can Help with Tax Returns
Stay up to Date with Legislation and Avoid Issues
A key part of an accountant’s job is to stay up to date with all of the current legislation and rules that apply to tax payments and returns.
Without this expert advice, it can be hard to do this, and can take a lot of time to learn the new rules with every change.
Mistakes on tax returns can lead to costly penalties and audits of your accounts. This can cost you time and leave you out of pocket, so anything you can do to avoid these is a positive.
Accountants will ensure every time you submit your personal tax returns, there are no mistakes and all legislation is being adhered to, which takes a big burden from your shoulders.
Make the Most of Your Money
Oneof the main reasons many people seek the help of an accountant is because in the long run, they can save money.
There are often deductions and credits that can be applied to someone’s earnings which means they don’t have to pay tax on certain items.
If you are trying to do your tax alone, you may miss out on these opportunities, which, if you earn large amounts of money, can be big sums.
Maximising tax savings (and making sure you are doing it correctly) can really help someone boost their finances, and an accountant that can help you do this will practically pay for themselves.
Provide Expert Know-How
In some financial situations, having the expert advice of a professional accountant can help you greatly.
Your chosen accountant will have years of experience behind them and be adept at finding solutions to any situation that comes their way. This will include providing advice tailored to your situation.
If you are laboured with a heavy tax burden, looking for small gains, or simply want someone to get your books in order, an accountant can do this for you, acting as a sounding board for your problems and providing knowledgeable and practical solutions.
Handle Complex Situations
There are some occasions in the financial world that can seem extremely complex to people not familiar with the current legislation and terminology.
Getting to the bottom of these scenarios by yourself can end up costing lots of time, and if you try and resolve it without getting to the bottom of the task fully, you may make a mistake.
This can include situations such as divorces, marriages, investments, or when starting a new business, and all these need to be factored into your tax returns.
Accountants are well-equipped to take control of a situation like this and will help you make informed decisions to meet your obligations correctly and efficiently.
Help You Save Time
For anyone trying to run a business, one of the most important things you can have is time.
While it is never a good idea to rush through your tax returns, if you take too long to do them, it could be costly to your professional life.
From staying up to date with legislation to organising and recording your income, many days can be spent on tax returns if you try to go alone.
An accountant will remove the time burden of preparing your tax returns and take it on themselves, allowing you to focus on other business matters.
If you are juggling multiple incomes or complex scenarios, this could free up days of time and help you boost your business.
Planning for the Future
When many people think of tax returns, they think of the here and now.
While this is important, you should also be looking to the future and planning how to make the most of your financial decisions as you move forward and grow your business.
Tax planning is about creating a comprehensive strategy that goes beyond just filing your annual returns, and an accountant can help you prepare this strategy and provide sound advice on the best steps to take.
Decisions now can mean you continue to make the most of your tax in the future and can save you more money with every year that passes, so it is definitely worthwhile to spend some time looking into it.
Allow You to Rest Assured
Many people look at their tax returns with trepidation, and it is easy to see why.
One mistake could lead to months of work and potential penalties. One thing an accountant can provide which is invaluable is peace of mind.
This allows you to rest assured, knowing that your tax returns are in order and are being handled in the correct manner.
Just having someone who you can talk to and discuss any issues with is a big help. An accountant will also help you out in many other ways, as mentioned throughout this blog, so you can always be sure you are making the most of your money when it comes to submitting your tax returns.
Help with Personal Tax Returns from Blue Rocket Accounting
If you dread the end of the financial year and spend days preparing your tax returns, then maybe an accountant is for you.
Our team here at Blue Rocket Accounting has amassed years of experience working for everyone from sole traders to huge corporations, and you could be next.
Want to know more, then get in touch today.
Disclaimer: This article should not replace legal advice. Blue Rocket Accounting assumes no responsibility or liability for any errors or omissions in the content of this site. Although every effort is made to ensure information is accurate and up to date, Blue Rocket Accounting takes no responsibility for legal action the reader chooses to take as a result of reading said literature. Please seek direct advice based on your individual circumstance.
