Are UK business taxes hard to manage?

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Are UK business taxes hard to manage?

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It depends on the overall size and financial complexity of your business. It also depends on how good you are at bookkeeping and staying on top of your business finances.

Generally speaking, tax isn’t that hard to manage for sole traders, which is why many freelancers tend to go down this route and register as a sole trader. Sole traders only need to really worry about filling in a self-assessment tax return form once a year. They just need to make sure they properly log all incomes and business expenses they wish to deduct.

However, if you register your business as anything other than a sole trader, such as a limited company, there tends to be much more red tape, and taxes can be harder to manage. Things like corporation tax, VAT, and PAYE start to come into play. That’s why many small-to-medium businesses use third-party tax software or pay for accountants like Advantage Accountancy to help them.

I, for one, wouldn’t even consider handling my taxes myself, even though my business is very small. I always outsource this job tax accountants in Cardiff instead. It’s a worthwhile investment, as far as I’m concerned, to safeguard my business against HMRC financial penalties.

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