If you run a business in the TV/media industry or are a freelancer, you may not fully understand what qualifies as a business expense and how to prepare your tax return. Media professionals aren't the only ones with accounting problems, but in this fast-paced, hectic industry, it's easy to put your financial responsibilities on the back burner.
Here is where the problem arises. If you are one of the select companies whose records are checked, you could be subject to a full tax audit if the investigator feels you have been doing things wrong for too long.
You may think you know what you are doing, but you may be making mistakes. This may be due to a misunderstanding, but it is also due to the fact that you cannot be a media expert and a qualified accountant at the same time.
They may be media professionals, but nothing in their work gives them the same understanding or knowledge as an accountant.
The problem here is tax audits. How can a media professional know what is right and what is wrong when it comes to record keeping? Basically, without the help of an accountant who specializes in media, it is impossible to know if what you are doing is right or not. In the unlikely event that you are subject to a tax audit, if your records are inaccurate, you could be penalized and your pocketbook could suffer.
Therefore, media professionals who are not sure whether their accounting procedures are correct or not are wise to consult an accountant who specializes in this industry.
Checking accounting records and conducting tax audits are not problems in and of themselves, but in an industry where creativity is more important than control, it can be very difficult to understand the laws and tax rules to get things done. If you are a media professional who just shoves receipts and invoices into a box thinking that you will sort them out later, why not consult an accounting firm that can provide a systemized accounting package with media professionals?
The peace of mind is irreplaceable, and the small outlay to avoid fines and get your tax assessments in line with HMRC guidelines will be invaluable to your business.
Information on this site is in no way meant to replace the advice of a professional. Please ensure to fact check and acquire professional help regarding all information on this website.