Self Assessment Tax Returns – 31st January 2020.
Avoid problems with HMRC if you’re Self-Employed. The Self Assessment Tax Returns 31st January 2020 deadline is nearly upon us.
It’s sobering to think that probably over half million people will still miss this deadline, and hence they are likely to face some hefty financial penalties from HMRC.
To make sure that you don’t fall into that category, and to make the whole self-assessment process as trouble free as possible, here’s some helpful guidance……..
Get and Stay Organised
Good bookkeeping is not only essential to help steer yourself clear of tax hell, but is also a legal necessity for you to keep financial record for five years when self-employed. If you fail to keep adequate records you could put yourself in line for a fine. That’s where we can help you of course. We remove this hassle, our bookkeeping service is competive and trouble free. Self Assessment Service
However, beyond it being necessary for tax purposes, it is also just generally good business practice and keeping good business records will help you save time and therefore money down the line.
Having some good online accounting sofware will make life so much easier for you. We work with leading cloud accounting software providers includng Xero and QuickBooks.
Online Accounting AdviceO
Reducing Your Tax Bill (legitimately!)
While tax evasion is a crime, tax avoidance is smart business practice. Consider the various ways in which you can legally work to reduce your tax bill each year. We can help you so much here
For example, there are a whole host of tax free allowances, such as paying into a pension scheme, which can all help insulate your money from taxation. Various necessary business expenses also fall into this category. We will help you look into what sort of expenses could be covered by this.
For example, you could save on office or room rental costs, the cost of travel or supplies, and you can even claim tax deductible business expenses. We can help with all of this! Contact Us
As a self-employed individual, particularly if you’re a sole trader or freelancer, keeping track of your expenses can make a massive difference come deadline day. If you’re working from home, you can claim a flat percentage of your household expenses such as gas & electricity and council tax, based on the number of hours you spend working at home each month, bey you didn’tknow that ! Bookkeeping Service
Be Ready to Pay
Remembering that the only things that are certain are death and taxes, don’t get caught short when it actually comes to paying up! Because you’re paying a lump sum of tax when you’re self-employed, rather than having the tax deducted from your monthly salary, you can prepare for this considerable financial outlay by setting aside an amount of your earnings each month. . Aside from your personal allowance of £11,850 (for 2018/19), you are going to have to pay tax on almost everything you earn.
The best way to keep on top of it, and to avoid a nasty shock in January, is to effectively pay it in advance. Work out roughly what you’re supposed to be paying, and put it in a savings account each time you get paid.
Always keep in mind that that money technically isn’t yours, it’s HMRC’s
This may not help you for this years 31st January deadline, but bear it in mind for future years
Get in touch, it’s never too late, if you need help with your Self Assessment Tax Returns – 31st January 2020 tax returns Contact Us