money management and tax

Why Money Management and Tax Go Hand-in-Hand?

06/03/2023tax , Tax Issues , Tax News and Tips , Taxation , VAT

We all aim to manage our tax affairs in the best possible way. Especially when you are a resident of the UK where tax is actually a serious matter and you very slim margin for tax matters from HMRC. It is best to learn to be able to manage your money if you aim to manage your tax affairs efficiently. This is why it is said that money management and tax go hand in hand. In case of doing the tax for the first time, you will instantly grab any kind of help you get. Realising the need we have to compile some of the popular and successful tips to manage your money and tax affairs.

Moreover, there are several platforms that can be a professional help for you to handle tax affairs by providing tips on how you can be good at handling the money matters in your business. This will further help you to keep things on top and make a name in the market. There can be efficient yet free apps that can solve your problems and answer your certain queries about the many management of tax problems in one go.

 

Reach out to one of our professionals to get to know about money management and tax in the UK. Get in touch and you will be provided instant professional help!

 

What is Money Management?

In simple words, we can say that money management refers to the idea of being on top of handling your money affairs efficiently. Especially in the case of self-employed individuals, you will have to be more forced on your financial matters. Because you can end up being broke if you are not good at handling your finances well. Even when you are employed, you need to keep good attention towards this matter. You will have to realise that when you are working with multiple clients, every day will be different from the other and also you will offer a variety of rates to different clients.

In such a case normally there are plenty of income streams to handle at the same time. This brings in the need of splitting your business expenses and your personal financial needs as well. It is advisable to get your hands the smart ways like smart banking and relevant software to experience a hassle-free and error-free process.

 

How Can I Handle Money Management and Tax?

By now you must be wondering about the popular ways of handling money management and tax at the same time. This will be helpful to keep your cash matters straight throughout the tax year as well. Well, we have compiled some popular and successful ways to handle your money and tax affairs well. These are listed and explained below for further explanation.

 

1. Categorise Your Spending

One of the polar ideas is to be able to categorise your spending habits. Whether it is about your business expenses or about your personal financial needs. This will bring more clarity to handling your financial needs. This will keep your financial matters on the right track as well. There are several apps in this regard, which will help you to automatically split your spending and transactions into specific categories, this will help you to know the place where you are spending the most money.

 

2. Check Your Accounts Regularly

According to the research, the young and new members of the business world are normally found to be scared of checking their bank account details regularly as they do not like what they find out. Many of you will still be able to relate to this fear. However, the professional recommends not following this habit and keeping a regular check on your accounts. This will allow you to have better control over your financial needs. Your mental health will be intact. Moreover, you will be able to plan your rainy days well. Life planning, saving and budgeting will also be aligned according to your needs.

 

3. Calculate the Tax You’ll Probably Owe

The more you will keep yourself prepared, the more you will be on the right track. You must not be handling the tax affairs and the tax bills like fear of ghosts to you. You should not be adding the surprise element from your tax bills if you are able to calculate how much amount you exactly owe to HMRC in form of tax. When you are a self-employed individual, you will have to pay national insurance and income tax, so it is better to be prepared for it. There are online self-employed calculators available on serial platforms to help you in this regard.

 

4. Save like it’s Going Out of Fashion

When it comes to the matter of tax, you must keep 20% of your income aside to be well prepared. This will help you a lot in paying taxes on time. There can be sudden unfortunate ways like the pandemic, so the more you will be prepared, the better you will be in a position to handle the uncertain circumstances. The bigger purchase like the main house or the business premises will also be handled well in this way. The daily stress of handling the expenses and also the uncertain things will be on the right track if you have a good amount in your savings accounts.

 

5. Create Spreadsheets

If you want to be the most organised to keep everything aligned in your mind, you must be creating a spreadsheet to keep a good record of all your spending details. You can keep track by spiting the monthly tabs and start recording your expenses in the relevant area.

 

The Bottom Line

Now that you have gathered a fair amount of information about how to handle money management and tax in the Uk, we can bring the discussion towards wrapping up. We can say that the management of money matters helps a lot to handle tax affairs and saying the tax bills on time. There are several apps and platforms in this regard that will further help you to keep yourself aligned. We hope these few minutes of reading will help you to develop a better understanding of the management of cash and tax at the same time for your future tax affairs.

 

Get in touch with our young, clever, and tech-driven professionals if you want to choose the best guide for money management and tax in the UK.

 

Disclaimer: The general information provided in this blog about how to manage receipts for tax in the UK includes text and graphics. It does not intend to disregard any of the professional advice in the future as well.


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why gyms need accountants
Why Gyms Need Accountants?

28/10/2024Accountants , Accounting

Are you wondering why gyms need accountants in the UK? If you are planning to start your gym in the UK or you are already running it, you better know that running a business model like this requires more than just the relevant equipment and skills. To ensure the growth of your gym and bring in long-term viability in this regard, the management of finances plays an essential role. This is why you require accountants and their expertise to navigate and simplify complex financial challenges and maintain compliance with tax regulations. These are normally being upgraded every other day to be on the competitive edge. Moreover, having an accountant to keep your financial challenges smooth will not only help to manage the challenges of tax compliance and finances but will free you up to focus better. This will lead to achieving the fitness goals of your customers in a better way than ever. In today’s comprehensive guide, we will talk about the major reasons that you ask to hire an accountant for your gym in the UK. So, let us get started. Our team of professional members loves to hear out your business problems and find out the possible and suitable solutions quickly to the reporting in the UK. Contact us now. Why Gyms Need Accountants? In this section, we have outlined the major reasons why gyms in the UK might need accountants. Accounting Software Implementation One of the major reasons for hiring accountants is to manage the implementation of accounting software so that the financial records can be maintained. Implementing Accounting Software Challenges – Selecting the right software like Xero, QuickBooks, Sage – Configuring software for gym-specific needs – Integrating with existing systems and processes – Ensuring data migration and accuracy – Training staff on software usage Accounting Software Benefits – Automated financial transactions and reporting – Real-time financial visibility and insights – Improved accuracy and reduced errors – Enhanced security and data backup – Simplified VAT and tax compliance – Scalability and flexibility for growth How Accountants Can Help? – Evaluating software options and recommending the best fit – Configuring software for gym-specific needs – Integrating software with existing systems – Providing training and support for staff – Ensuring seamless data migration Options of Accounting Software – Cloud-based solutions like Xero, QuickBooks Online – Desktop solutions like Sage, QuickBooks Desktop – Industry-specific solutions like gym management software HMRC Correspondence Preparing the statutory accounts is essential for any small or large business in the UK. 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Why is HMRC Correspondence Critical? – Tax inquiries and investigations – Audit and inspection requests – Disputes and appeals – VAT and PAYE queries – Corporation tax and self-assessment submissions Accountant Representation Benefits – Expertise in tax law and regulations – Effective communication with HMRC – Timely response to inquiries and audits – Strategic guidance on dispute resolution – Minimisation of penalties and fines Challenges of HMRC Correspondence – Understanding complex tax legislation – Meeting tight response deadlines – Providing accurate financial information – Resolving tax disputes and appeals – Managing HMRC inspections and audits How Accountants Can Help? – Interpreting HMRC correspondence and requirements – Preparing and submitting tax returns and documents – Representing gyms in tax disputes and appeals – Conducting internal audits to ensure compliance – Guiding tax-efficient practices Inadequate HMRC Correspondence Consequences – Penalties and fines for non-compliance – Damage to business reputation – Loss of business credibility – Increased risk of future HMRC scrutiny – Financial and operational disruption HMRC Correspondence – Maintain accurate financial records – Respond promptly to HMRC inquiries – Seek professional advice from accountants – Stay up-to-date with tax legislation changes – Ensure transparency and cooperation with HMRC By partnering with experienced accountants, gyms in the UK can: – Ensure compliance with tax regulations – Minimise the risk of penalties and fines – Resolve tax disputes efficiently – Maintain a positive business reputation – Focus on core operations The Bottom Line In conclusion, it is clear why gyms need accountants in the UK. 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This will allow several aspects of your gym to boost and plan for better success ahead. Consider hiring our accountants for Gyms in the UK to help you manage your financial affairs. Our accountants at CruseBurke can be your trusted partner, helping you reach your full potential while freeing up time to focus on your craft.

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tax bill so high
Why is My Tax Bills are So High?

20/03/2023tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

One of the best feelings for the tax return submitter is that the tax has finally been submitted and no error is found in the record and procedure. The potential burst occurs when one receives the tax bill. However, there are several people who are worried about the fact of high bills and tend to ask the professionals the reason why their tax bill is so high. This guide will help you to develop an understanding of the expected reasons for the increased tax bills and what the scenario can be if you do not pay the tax bill. Let us get further delved into the discussion to know additionally.   Reach out to our intelligent and clever-minded guys to get the answer to your queries in the UK, we will get to your answers quickly. We will help to decide how to deal with your tax implications.   Why Your Tax Bill Might be Higher than Expected? The best thing you can do after receiving the higher tax bill is to keep yourself calm and focus on the solution rather than the problem. Sometimes you even look at the figures and can not identify whether they are correct. On the other hand, there can be some possible errors that can be a part of the filing procedures. Below are the expected possible problems and related explanations that will help to figure out what can be the problem in filing the tax returns.   1. You Calculated it Wrong There is no need to panic if you have made errors in the calculations. At times there is an error in the calculation and sometimes there are some expenses on the spreadsheet that is misread. This becomes one of the reasons to get tax bills that is not according to your expectations. You can even go to an expert that can help you to figure out the problems with your numbers and how they can cause the problem in your tax bills. You must ensure the payments are cleared in this regard and keep the changes updated in the rates of NI.   2. You Forgot to Include Your Employment Income Not including employment income is a common mistake. People tend to consider the main income or the main source of employment when they’re doing their self-assessment tax returns. Most of the time, this main source of income is taxed through the PAYE system. It is because of the mistakes that are made due to the income that is not declared to HMRC. Mostly side gigs are included in such mistakes which becomes a reason for the unexpected tax bills. So it is better to get the income declared to HMRC whether is related to the main income source or the side gig income.   3. HMRC’s Records aren’t Accurate This is quite possible with the records of HMRC to have an issue with the numbers. This happens in the scenario when the records are not updated and the tax bill you receive is higher than you expect it to be. So it is imperative for you to immediately get in touch with HMRC and update your information if you have changed your employment status or you have recently started earning through a side gig. Otherwise, you will have to go through the struggle of fines and penalties. It is best to find out the problem and find out what is the possible solution to the issue.   4. You’re on the Wrong Tax Code The wrong tax code is one of the common problems to receive a tax bill that is higher than your expectations. It is one of the problems that are also hard to identify as well. So it is best to be aware of the tax codes to avoid errors and face the struggle of fines and penalties. In case of the wrong tax code, the best one can do is to get in touch with HMRC. Your tax code matters a lot in getting your tax bill. Your tax code is given on your payslip, form P45, and P60. You can even get in touch with HMRC to get the information.   5. You have Multiple Streams of Income that You didn’t Include If you have multiple income streams, you must add all the information to get the right tax bills and no errors made in this regard. This is because of the fact that HMRC will get to know about all the possible streams that are being used for your income. So get in touch with HMRC about your multiple income streams and employment status if you have recently made a change.   The Bottom Line Now that you have gathered a fair amount of information about why is my tax bill so high in the UK, we can bring the discussion towards wrapping up. Getting a higher tax bill is the last thing anyone wants after the tax returns are submitted. There can be a number of possible reasons to make such mistakes. This is better to be conscious to avoid these mistakes so that you do not have to face any struggle with penalties and tax fines in the future.   Our team of professional members loves to hear out your problems and find out the possible and suitable solutions quickly for small businesses’ accounting problems. Call us or email us today.   Disclaimer: The information provided in this blog is about why tax bills are so high in the UK, including the text and graphics, in general. It does not intend to disregard any of the professional advice.

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