Running a small or medium-sized enterprise (SME) can be a rewarding endeavour, but it's not without its challenges. Among these challenges are common mistakes that SME owners often make. Here are some of the most frequent errors and oversights: Withdrawing Funds Without Proper Payroll Processing: One common mistake is withdrawing money from the business bank account without first processing payroll and submitting Real Time Information (RTI) to HM Revenue & Customs (HMRC). Taking Loans from the Company: Another pitfall is taking loans from the limited company, which can result in a higher tax burden for the company, typically at a rate of 33.75%. Mixing Personal and Business Finances: Using personal bank accounts or cards for business transactions, such as collecting receipts or making payments, can lead to confusion and complicate accounting processes. Lack of Mileage Tracking: Failing to maintain a mileage log for personal vehicles used for business purposes can result in miss...
Talks about UK taxation, VAT, CIS, PAYE.