Being an entrepreneur is no easy feat. You have to constantly juggle multiple businesses, keep up with the latest trends, and stay on top of your finances. One of the most daunting tasks for many entrepreneurs is working out their taxes. With multiple businesses, it can be even more complicated. In this blog post, we will discuss some tips and tricks for entrepreneurs with more than one company, on how to calculate their taxes.

1. Keep Meticulous Records For Each Small Business

The key to successfully working out your taxes as an entrepreneur with multiple businesses is to keep meticulous records. This means keeping track of all your income and expenses for each business separately. Make sure to save all receipts, invoices, and any other relevant documents. This will make it much easier when it comes time to file your taxes.

2. Separate Each Business’s Finances

It’s crucial to keep your personal and business finances separate, especially when you have multiple businesses. This will help you stay organised and make it easier to track your income and expenses. Consider opening separate bank accounts for each business to make things even simpler; if you’re worried about fees there are a number of free business bank accounts you can look into.

3. Seek Professional Help Managing Taxes For Multiple Businesses

Taxes can be incredibly complex, especially when you have multiple businesses. It’s worth considering hiring a tax professional to help you work out your taxes. They will be able to provide you with valuable advice and ensure that you are taking advantage of all available deductions and credits.

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4. Stay Up To Date With Tax Laws

Tax laws are constantly changing, so it’s important to stay up to date with the latest regulations. Make sure to regularly review the HM Revenue & Customs website for updates that may affect any of your businesses. Ignorance is not an excuse when it comes to taxes, so make sure you are informed.

5. Use Accounting Software To Help Separate Businesses

Investing in accounting software can make your life much easier when it comes to working out your taxes. Many software programs are specifically designed for small businesses and can help you track your income and expenses, generate financial reports, and even prepare your tax returns. Some popular options include QuickBooks, Xero, and FreshBooks.

6. Take Advantage Of Tax Breaks For Each Business

As a business owner, you may be eligible for various tax breaks and deductions. Make sure to take advantage of these opportunities to reduce your tax liability. Some common deductions for entrepreneurs include home office expenses, travel expenses, and equipment purchases.

7. Plan ahead

Don’t wait until the last minute to work out your taxes. Start planning ahead early in the year so that you have plenty of time to gather all the necessary documents and information. This will help you avoid any last-minute stress and ensure that you are able to take advantage of all available deductions.

Once you have set up your company, it’s important to be aware of the various filing deadlines.

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Corporation Tax

In the UK, the deadline for filing your corporation tax return is typically 12 months after the end of your accounting period. For example, if your accounting period ends on December 31st, your corporation tax return would be due by December 31st of the following year. It’s crucial to make sure you meet these deadlines to avoid penalties and interest charges. Additionally, if you are a new company, you may have different deadlines for your first corporation tax return, so it’s essential to familiarise yourself with the specific requirements for newly incorporated businesses.

VAT

Rather than yearly, it is now possible, and often mandatory, to submit your VAT return monthly or quarterly. Keeping on top of your bookkeeping regularly will make this task far easier, and should help prevent late submissions.

PAYE

The PAYE month ends on the 5th of each month, for example, 6th October to 5th November. The deadline for paying PAYE and NICs to HMRC is the 22nd, or 19th if by post. P60s must be provided yearly for all PAYE employees by 31st May.

In conclusion, working out your taxes as an entrepreneur with multiple businesses can be challenging, but with the right approach, it is definitely manageable. By keeping meticulous records, separating your finances, seeking professional help, staying up to date with tax laws, using accounting software, taking advantage of tax breaks, and planning ahead, you can successfully navigate the world of taxes as a busy entrepreneur. Good luck!

For help with your taxes, whether you have multiple businesses or one, get in touch with Neil Smith Accountancy. We have been serving small business clients across Essex and London for over fifteen years. We have the expertise to help your start-up and also provide self-assessment tax return services. 

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