Setting up your own business comes with risks and challenges, and as your business grows, so the demands on you, as a business owner grow too.
One of these demands is tax. Tax has a considerable impact on small businesses.
This is because, due to size, many SMEs must manage their taxation and accountancy paperwork with limited resources.
And the current tax regime in the UK is not always the easiest to understand. There are complexities that can be demanding on time and resources, and which can mount as your business develops.
SMEs are very much the engine room of the UK economy. They account for over 99% of the business population, and provide over half the turnover of the private sector.
They are major employers too, accounting for around three fifths of the workforce.
But as an SME, you also face an administrative tax burden. This can include:
Also, if you have employees, you’ll have PAYE to manage.
All these things add up, and all have their own rules, regulations and exceptions.
How much of this do you need to tackle on your own?
One of the key traits of successful small and medium-sized businesses is knowing when to outsource, and who to outsource to.
This is about making the most of available resources and support, and understanding that having your own limitations isn’t a weakness.
Outsourcing your accountancy to a specialist brings a range of benefits with it. Small business accountants help your business in more ways than just looking after your tax.
Expert accountancy is a valuable business resource, which can help to keep your enterprise on track with its taxes, but also support your growth, business development and prosperity through consultancy services such as management accounting, or helping SME’s claim tax relief such as R&D credits.