Small Businesses crippled by HMRC fines
Since starting my own Payroll & Bookkeeping business I’ve heard tales of small businesses being slapped with fines for not paying over corporation tax on time.
No matter how much your corporation tax bill is you still have to pay it over in the required time frame set by HMRC. One story I heard was the corporation tax for last year was £1.95, they were late paying, which cost them another £100!
Another story concerned the late return of P14’s for the tax year end. The end of year return had to be with the HMRC by 19th May, it’s now nearly 2 months late. HMRC will charge penalties for each month or part month the return is late, this is calculated on the number of employees the business has. For every 50 employees, it will be £100 penalty which will also accrue interest.
Small businesses want and need to spend their time building the business not messing about with paperwork or worrying about tax and fines.
So what is the solution? How can a small business rid themselves of this extra work and worry?
They could employ a knowledgeable, experienced bookkeeper to do these tasks for them. But obviously this is an extra wage that has to be paid and this can be expensive for the business.
Alternatively a more cost saving approach would be to outsource the work to a professional payroll & bookkeeping service. A service that can tailor the costs to the business needs so they pay for as much or as little as they need, with the comfort of knowing the worries of tax and fines are taken care of.
If outsourcing appeals to you and want to avoid those fines, and have no worries, then contact shani@End2EndPayroll.com for a no obligation quote.