Communicating With Your Accountant

When you choose to hire an accountant to handle your accounts and taxation affairs it is crucial to make sure you communicate with them on a continuous basis and keep them fully informed.

Outlined below are a few circumstances where communication, either by way of a phone call or a face-to-face meeting with your accountant, is crucial.

1.Changes to your tax situation; these can come in many forms; the most common changes include:

Changes to your personal and/or business contact details; these need to be lodged with HM Revenue and Customs and Companies House. It is very important to make sure that your accountant is made fully aware of any changes so that they may notify the above authorities on your behalf which will ensure that any relevant correspondence continues to reach you.

Changes to your tax status: if you leave the country for any particular reason then this could affect how you are taxed in the UK, for instance, you may take on a long-term job abroad and thus no longer be classified as resident in the UK for income tax purposes for a particular tax year. Again, letting your accountant know about your movements abroad will mean that they can advise you on any tax consequences relating to them.

2. If you make or intend to have any new forms of income in a certain tax year it is also advisable to inform the accountant as soon as possible so that they can give you some sound tax planning advice. If you intend, for example, to acquire a property to let out, the accountant may be able to provide you with some advice about the types of expenses you will be able to claim for and advise you on the most tax efficient way to structure the purchase.

You may also be considering selling a property or other valuable asset that may result in a capital gain. If you discuss this issue with your accountant before you sell, they may be able to give you advice that will help to mitigate any capital gains tax and reduce any resulting tax liability.

3. If your business income or profit is changing dramatically it is a good idea to see if your accountant can help provide some advice so that you can manage any associated effects of these changes. If your turnover has increased, for example, and you could be in danger of exceeding the VAT threshold, your accountant can advise you on how to register for VAT and the additional records you will need to keep in order to comply with this indirect tax.

Alternatively, your business may have made a loss for the first time or the profits may have suffered for a particular trading period. In these circumstances your accountant may be able to provide some sound advice on surviving these difficulties or may be able to help the business obtain additional funding to help out with cash flow allowing your business to continue to trade. 

To find out how we can help your business visit Accountants Chelmsford