Filling out your self-assessment tax form can be a daunting task but if you are organised and prepare correctly then you can avoid any headaches or penalties. Below are five tips for filing your self-assessment tax form.
Hire an accountant
For some people, the thought of filling a self-assessment tax form can be filled with dread. So, the best solution is to hire an accountant who can do the job for you. Accountants will understand about all the deductions you can make if you are a freelancer or own a small business. Did you know that if you work from home you can claim a portion of your utility bills including internet usage? There can be a lot to consider, so to make sure you are claiming everything you are entitled to by hiring an accountant.
Register with HMRC
Another important tip is to make sure that you are registered with HMRC first before you start filling in your self-assessment tax form. You do not want to encounter any problems further down the line. If you are starting a new business venture there are a lot of things to do such as organising marketing material and place of business, etc. But if you do not register with HMRC first when it comes to the tax year-end you could find yourself in trouble.
Do not ignore the deadlines
You have got to be organised when it comes to filling a self-assessment tax form as you meet the deadline on time. October 31st is the deadline for filing a paper tax return. However, most people will do theirs online and the deadline for that is January 31st which is also the date that you should pay any tax that you owe. So, do not ignore the deadlines before it is too late – highlight them in your calendar and diaries now and set online alerts so that you will not forget.
Include everything when filing your self-assessment
One of the most important things to remember when filing your self-assessment tax form is to include everything. HMRC are incredibly strict about this. Sales from an Etsy shop or even anything you sell on eBay all needs to be recorded. Basically, if your income for the tax year exceeds £1,000 then you will have to file a tax return.
Organisation is key
Throughout the year prior to filing your tax return, you need to get into the habit of keeping receipts and track of your expenses. One great tip to open a bank account that is purely for your tax money. This way you know not to touch it and you can keep track of everything going in. It needs to be your goal to keep hold of everything, even if you do not think it is important you may require it later.
If you are struggling with your tax return then the team at The Stan Lee can help. Get in touch with them today and find out how they can help take the stress out of your self-assessment tax form.