The Role of a Limited Company Tax Accountant

Many tax accounting firms have been set up recently as limited company entities so as to assist their customers who want to reduce their tax liabilities. A tax accountant for limited companies can be a great source to help you understand UK tax law and also how to effectively reduce your tax liabilities with the IRS. This article aims to provide an introduction to this sector of UK tax preparation services.

Pro Tax Accountant

The first point to note about tax accountants is that they are independent contractors (which is legal in UK) who are employed to perform specific tasks for their clients. In most countries, tax accountants are employed by limited companies, partnership or even an individual. In the UK, tax accountants cannot work for two clients at the same time. They are obliged to remain exclusive to one business for a fixed number of years. Generally speaking, a tax accountant for limited companies will not have any connection or dealings with the businesses he prepares tax returns for.

Tax accounting firms can be found all over the country. They can be found in virtually every city, town and village. Online resources provide a quick way to find them. Most accountants have their own websites where they provide online tax filing services as well as offering financial and tax advice. Online resources make it very easy for a company to obtain its tax obligations, at the lowest costs.

Advantages of  Tax Accountant

A company can receive many benefits when it decides to hire an accountant to guide it through the process of filing its annual income tax return. A tax accountant for limited companies helps the company get a tax refund, which is based on the company’s expenses and receipts rather than on the company’s actual income. In other words, the more tax liability the company has, the bigger the tax refund it can expect. This allows tax accounting firms to persuade their clients to pay as little as possible or even nothing at all, depending on the client’s financial situation.

A tax accountant for limited companies helps a company develop an effective tax strategy. The tax accountant studies the tax code, prepares reports analyzing the tax liabilities of the company and recommends the ways to lessen or remove those liabilities. The tax accountant for limited companies can also negotiate with the government to ease the tax burden. He may even represent his client before tax authorities. This gives him an in-depth knowledge of the prevailing tax laws.

Many accounting firms offer advice free of charge. In order to get this, the client must first be sure that he or she needs a tax accountant for limited companies. This is because the accounting firms offer only advice on tax liabilities only. They cannot help a company with its income tax obligations or any other tax obligations that a company faces. Accounting firms can also hire accountants who work independently to work on these tax matters.

Tax Accounting Firms

As mentioned, tax accounting firms can help a company with its tax liabilities by suggesting ways to minimize or eliminate them. For instance, some tax accounting firms can suggest strategies to minimize the tax payments to the government by taking advantage of tax laws that offer tax credits to low-income groups. Such programs are usually aimed at providing a means for low-income citizens to afford certain necessities, like housing. This way, the limited company does not end up losing its share of profit from the increased tax revenues it gets. However, such tax accounting firms must be licensed by states to provide this service.

The accountant hired by a company to handle its tax liability should have knowledge about the latest tax legislation so that he can advise the company accordingly. For instance, he must know how to use a tax expenditure chart properly to calculate the company tax liability. This way, the accountant can provide the necessary information to the management and help them make informed tax decisions.


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