What do business accountants do?
Business accountants help companies keep accurate financial records, meet tax and filing deadlines, and understand how the business is performing. This can include preparing annual accounts, calculating corporation tax, managing VAT returns, running payroll, supporting bookkeeping and advising on tax planning.
A good business accountant can also help with cash flow, profit extraction, management accounts, business structure and planning for growth. For directors and owner-managed businesses, this support can be especially useful because company tax, personal tax, salary, dividends and pensions often need to be considered together.
How much do accountants charge for VAT returns?
The cost of VAT return preparation depends on the size of the business, the number of transactions, the quality of the bookkeeping records and whether the accountant is only reviewing the return or managing the bookkeeping as well.
A simple VAT return for a business with clean digital records will usually cost less than one where records are incomplete, transactions need coding or VAT treatment needs more detailed review. Some accountants charge per VAT return, while others include VAT support as part of a monthly accountancy package.
Before appointing an accountant, ask whether the fee includes bookkeeping, VAT return preparation, submission to HMRC, Making Tax Digital support and advice on VAT queries.
How long do tax returns take?
The time needed to complete a tax return depends on how complex the return is and how quickly the required information is provided. A straightforward self assessment tax return can often be prepared quickly once all records are available. More complex returns involving property income, dividends, capital gains, self-employment, overseas income or director remuneration will usually take longer.
Delays often happen when records are incomplete, documents are missing or information needs to be checked with HMRC. It is always best to start well before the deadline, especially for self assessment, where late filing can lead to penalties and interest.
Can accountants help save you money?
Yes, accountants can often help save money, although the exact value depends on your circumstances. They can identify allowable expenses, improve tax efficiency, reduce the risk of penalties, advise on VAT, review salary and dividend structures, and help avoid errors that could become expensive later.
For businesses, accountants can also help highlight rising costs, weak margins, cash flow pressure or inefficient systems. The value is not only in reducing tax. It is also in having better financial information, fewer surprises and more confidence when making decisions.
Can a bookkeeper do tax returns?
A bookkeeper can help keep records organised, reconcile bank transactions, process invoices, maintain ledgers and prepare information for VAT returns or year-end accounts. Some bookkeepers may also support basic submissions, depending on their qualifications and experience.
However, more complex tax returns, company accounts, corporation tax planning and strategic tax advice are usually handled by an accountant or tax adviser. For many businesses, the best approach is for bookkeeping and accountancy to work together, so day-to-day records are accurate and the final tax position is reviewed properly.
How is corporation tax calculated?
Corporation tax is calculated on a company’s taxable profits. This usually starts with the company’s accounting profit, then adjustments are made for tax purposes. Some expenses may not be allowable for corporation tax, while certain reliefs, allowances or deductions may reduce the taxable profit.
Once taxable profit has been calculated, the relevant corporation tax rate is applied. The final amount due depends on the company’s profit level, available reliefs and any specific tax rules that apply to the business.
An accountant can prepare the corporation tax computation, file the company tax return with HMRC and advise on ways to manage the company’s tax position properly.
.png)
