Tax system ‘can be more difficult for the self-employed’

Self-employed businesspeople should be especially careful about their financial affairs, according the Chartered Institute of Taxation (CIOT).

Chairman of the CIOT‘s management of taxes sub-committee John Whiting claims that it is especially important for the self-employed to keep an eye on their taxes because they are personally responsible for what they pay.

Entrepreneurs have to understand the tax system, for example by being aware of how to keep comprehensive records and fill in tax returns, he comments.

Mr Whiting said: ‘It’s far easier for [the self-employed] to make mistakes, and far easier to get it wrong.

‘When you are self-employed, you are not only supporting yourself and your loved ones, you are also supporting the tax man. It’s not easy,’ he added.

A number of tax changes that will affect small business owners are coming into force in the next tax year, which begins on April 6th, for example different rates of income tax, capital gains tax and corporation tax.

See also: The 5 most common tax mistakes when you’re self-employed

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Self Employed