5 Common Tax Mistakes Small Businesses Make (And How to Avoid Them)

Introduction
Tax season can feel daunting—especially when unexpected bills arrive. But many small-business owners trip over the same pitfalls every year. Let’s shine a light on the top five mistakes and simple steps to steer clear of them.

1. Missing Deadlines

USING A CALENDAR reminder or software can cut your chances of late-filing fines to zero. Block out key dates (self-assessment, VAT returns, corporation tax) and set at least two alerts.

2. Poor Record-Keeping

Receipts stuffed in shoeboxes? Digitize them using apps like Dext or even your phone’s camera. Consistent categorization now saves hours later.

3. Mixing Personal and Business Expenses

Keep a separate bank account and cards for the business. Any personal spend in the business account is extra accounting work—and potential headaches if you’re ever audited.

4. Overlooking Allowable Expenses

From home-office costs to mileage, small businesses are often entitled to more deductions than they realize. A quick chat with your tax advisor can uncover savings you didn’t know existed.

5. Ignoring VAT Thresholds

Crossing the VAT threshold without registering on time can trigger penalties. Monitor your rolling turnover, and give yourself plenty of lead time to register when you approach the limit.

Conclusion
Avoid these common traps and you’ll sail through tax season with confidence. Need advice tailored to your business?