A financial expert has given key tips for getting your taxes filed with just days left to the deadline. Self-employed Brits need to get their figures in place by the end of this month if they are to avoid being fined by HMRC.
George Mansfield from accountancy firm Kyzen Sports has assured those in need of updated paperwork that there are some simple steps they can take to avoid being penalised. He said: “People have until midnight on January 31 to complete the necessary HMRC self-assessment forms online.
“Unfortunately, the deadline for filing a tax return by post passed in October, but most people use the fairly straightforward HMRC website these days.
“We often see lots of chat on social media around the end of January, with people posting pictures of piles of receipts and commenting on how stressed they find the whole process.
“But by taking a few simple steps you can easily remove the anxiety and make sure you have everything sorted in plenty of time.”
Here are George’s tips:
Get organised
Even if you have run it fine this year, now is a good time to commit to forming some good financial habits.
Keep records of ingoings and outgoings up to date every week, and carry out a monthly health check to ensure small issues don’t grow into larger problems as the deadline for your tax returns approaches.
There are plenty of bookkeeping apps and software packages that can help with this. You can even do most of the heavy-lifting from your mobile phone.
Claim everything you’re entitled to
HMRC’s online forms will guide you through this process, but it’s worth having a good idea of what’s on the list before you start.
‘Allowable expenses’ include things such as travel costs (fuel and parking), heating and lighting in your place of work - this can include your own property if you work from home - and financial costs such as bank charges.
The way it works is that the value of these expenses is deducted from your annual turnover, and you will be left within your ‘taxable profit’ - the amount you will pay income tax on.
Check, check and check again - mistakes could cost you money
HMRC does allow up to 12 months to correct any errors, but it’s far better to get your figures right first time and save yourself a major headache.
Claiming expenses you are not entitled to, even if this is through an honest mistake, could lead to prosecution. This also goes for failing to declare income.
If you’ve done step one and organised everything, this should be much more straightforward. But even if you are well prepared it’s definitely worth checking the figures before clicking on ‘submit’.
Don’t ignore it
There’s still plenty of time to get your self-assessment forms filled in correctly - January is hardly the busiest month for socialising!
But some people will still feel overwhelmed by the very thought of sitting down with a laptop and a pile of receipts.
The key thing is to face the fact this needs doing regardless. You’ll get an immediate £100 fine if you miss the January 31 deadline, which increases after three months.
Get expert help
Some self-employed workers and small business owners have no issue with filing their tax returns. They may even enjoy the process.
But there are many more who dread it.
If this is you, it’s definitely worth considering contacting an accountant to help you through the process.
If you were having a housing extension built or getting your car fixed, you wouldn’t hesitate to seek out an expert.
The same should go for keeping your business finances in good shape and avoiding an unwanted bill from the taxman.
