Whilst this year’s tax return deadline is almost upon us, it’s a good time to reflect on how you can make the process easier (and hopefully less stressful) next time around.
We’ve got some tips and advice on what you can do throughout the year to ensure the process is as simple as possible.
Get into good habits from the start
Keep records (e.g. receipts) and look into whether some accounting software would be useful. Keep an eye out in the coming weeks for our round up of the best software and apps you can use.
Another great tip is to have a separate business bank account. That way you don’t have to waste time separating out personal and business expenses.
Carry out monthly bookkeeping
Each month ensure you reconcile your bank statement and check you have all your receipts and invoices. Chase up any unpaid invoices.
Complete your tax return early
If you’ve followed steps 1 and 2 above then you should be in a great position to file your tax return as soon as the tax year ends. This means you’ll know exactly what your tax bill will be and you have over 9 months to pay it.
Don’t be late
As mentioned in our previous post, you don’t want to be late filing your return as you will receive an automatic £100 penalty if you don’t file by the 31 January deadline. These penalties become daily if you don’t file within 3 months of the deadline.
Claim all expenses you are entitled to
We’ll be publishing a post in the coming weeks about all the expenses you can claim for. However - this is where using an accountant can prove cost-effective as they will be best placed to ensure that you have claimed everything you are entitled to claim. See point 7 below.
Avoid mistakes and inaccuracies
Don’t try to claim expenses you’re not entitled to. Penalties for inaccuracies can be severe. Make sure you declare all income too!
If you do make a mistake then you normally get 12 months from 31 January after the end of the tax year to correct it / amend.
Get an accountant!
Obviously we would promote getting an accountant! However, as mentioned above, an accountant can ensure you claim everything you’re entitled to which will minimise your tax bill. It will also take the hassle away from you and ensure deadlines are met.
Contact us on 07586163344 or drop us an email at katie@bluearrowaccounting.co.uk
Comments