In the UK, 90% of businesses belong to sole traders. Adopting this legal business structure is popular as it’s ideal for small startups that want keep operating costs low and have a hands-on
approach to the daily running of their business.
However, it is not uncommon for contractors and subcontractors to have 20% deducted from their earnings, without taking into consideration any business expenses and personal allowances.
For many, who consider HMRC to be the only tax agent that can be used to calculate and submit tax to, many are now turning to tax agents that are considered “high volume, high risk”.
It’s fair to say that HMRC is often synonymous with a) the fact they are all seeing b) that they don’t like to give refunds.
That’s why there are 120 tax agents now in the UK who can provide you with honest, accurate and intelligent tax accounts that are a true reflection of your business, so let’s see what the benefits of when subcontractors should seek a refund.
Subcontractors should seek a refund to ultimately save them resources in the long-run. Rather than sitting in the tax collector’s bank account, using a tax agent can help to ensure that it comes back to yours ready to be reinvested back into the company and saves you the time and hassle of contacting HMRC yourself.
Inaccurate tax accounts that fail to calculate the costs to the business i.e. mileage and purchases will show a very different business to the one you actually run without receiving the refund you are owed. Therefore, obtaining a refund will ensure that your business accounts are a true reflection of the business at the current time.
For more information on obtaining a refund as a subcontractor, contact Robert Lewis Accountants to speak to one of our team today.