How To Limit Your Stress This Tax Return Deadline
If you are a self-employed sole trader the chances are you dread January as you haven’t yet filed your self-assessment tax return. If you have, great news you will not be one of the millions rummaging around drawers for receipts in January!
Getting this monumental task completed early is no mean feat. But it is possible to get through the tax season without experiencing a stressful sprint to 31st January.
Here, Mike Parkes from GoSimpleTax explains how.
Gather all information soon
Don’t delay get the required data together now. Make a checklist such as the one below to ensure you have everything avoiding unnecessary delays.
Documents and Information Checklist. (suggested format)
|Documents/Information||Found||Need to Find|
|National Insurance Number|
|Unique Taxpayer Reference number or UTR|
|Business/partnership name, address and company number if relevant|
|The business’s annual income and expenditure|
|Income earned from other employment|
|Any rent they have received|
|Interest paid on loans, credit cards or other credit|
|Income from overseas|
|Income received from a partnership|
|Any dividends received|
|Benefits received either from the state or an employer|
|Capital gains received|
|Gift Aid received|
|Tax payments they have already made this year (payments on account)|
If you have an accountant or bookkeeper filing your return ask them to sign and register the 64-8 form earlier rather than later. This will make them officially recognised as your agent by HMRC, and able to act on your behalf.
Know what you need
You have your checklist of standard data required, but you may require extra information.
Perhaps you have a student loan. Maybe you (or your partner) are claiming Child Benefit. If there’s the slightest possibility your circumstances will affect how much tax you need to pay, you should be aware.
INsiders receive a 10% discount off GoSimpleTax – Get started today and your discount code will be emailed to you.
Be aware of possible penalties
Submitting the Self-Assessment late comes with penalties, so be aware of these and know how you will need to provide all the necessary data to ensure they avoid them.
Check for mistakes now
It’s possible that, when you have gathered your information together, you may have missed something out or made an error.
So, once you’ve collated everything you need look at it as soon as possible. You’ll want to guarantee that nothing doesn’t quite add up or has been excluded.
Minimise errors with tax software
The chances of any mistakes can be reduced through Self-Assessment tax return software. It will take all the administrative work off your hands, ensuring the numbers are correct.
Think ahead for Making Tax Digital
With MTD over the horizon begin converting to a software such as GoSimpleTax and utilise their income tax calculator and submission tool for your business. Giving you full visibility of your tax liability in real time whilst giving and reviewing your pension contributions and investment opportunities.
GoSimpleTax supports the self-employed and sole traders all over the UK to file accurate Self-Assessment tax returns. You’ll be able to do so quickly as well – their software automatically calculates income, expenditure and tax owed in real time, and from a variety of devices.