If you are a freelancer in Canary Wharf, it will be your responsibility to report your income and expenses to the tax authorities. That means declaring such information on your Self Assessment tax return – which poses a surprising number of problems to many of the self-employed. With freelance life also meaning none of the holidays and sick pay that the employed enjoy, the onus really is on you to make good use of the free time that you have to keep your tax affairs in order.
Although there are many Canary Wharf accounting firms that can help freelancers in the area to keep on top of their tax obligations, giving tips on how to save tax while remaining in compliance with all of the important legislation, it is important not to be lulled into a false sense of security by this relationship. Ultimately, the responsibility for keeping records and filing tax returns that appropriately report your accounts, lies with you and you alone. Neither your bookkeeper, nor your accountant, nor anybody else is responsible for ensuring that your paperwork or accounting calculations are immaculate.
One reason why it’s so important for the clients of Canary Wharf accounting firms to know that the buck stops with them, is that an Inland Revenue enquiry is highly inevitable, sooner or later. When the taxman examines your tax return and accounts, they should see that the right amount of profit has been declared, and accordingly, the right amount of tax paid. Enquiries can be stressful, and they will be so much more so if your tax records are disorganised and don’t immediately and clearly back up what you have stated on your tax return. Instead, store your invoices and receipts neatly and in good order.
If you’ve already spent some time as a freelancer or contractor, you might already be waist-deep in your work and growing your business – so take the time right at the start to ensure the good organisation of your vital paperwork. Research the various elements of tax law, determining which ones apply to you and your situation. The Inland Revenue website is one obvious place to look for information, while Canary Wharf accounting firms may also be able to provide limited free advice.
You’ll feel so much less anxious whenever the next Self Assessment deadline nears, if you are in full control of your paperwork and aware of your specific responsibilities, rather than having to make sense of a heap of disorganised data and paperwork, dating back a year. Look at the actual Self Assessment tax return that you will need to complete, identify the relevant parts to you and ensure that your records have been kept in a corresponding fashion, well ahead of the deadline. It all means that you spend so much more time on your core business, rather than furiously calling Canary Wharf accounting firms at the last moment before a deadline.