It feels like it comes around faster every year. Tax season is a stark reminder to get your accounts in order, and it’s never too early to start preparing your tax return. You don’t need an accountant to help you do this. Taking the DIY approach is easier than you might think, and you can save on average £250 by doing it yourself. To help you get started, follow these top tips on filing your Self-Assessment:
1. Complete your tax return online
If you’re still using paper forms to complete your Self-Assessment, it’s time to switch to online submissions. While the deadline for paper tax returns is the 31st of October, online returns don’t have to be submitted until the 31st of January, giving you more time to set your finances in order. It also saves postage fees and offers a more convenient way to complete your form.
2. Store your receipts digitally
Monitoring your expenses is much easier when you have the right tools for the job. By going digital with your receipts, you can record your purchases in a single place, eliminating the risk of losing or forgetting about your paperwork.
There are apps that allow you to take a picture of your receipt and upload it to your tax return. So when you’re popping into your local trade supplier or filling up at a petrol station, you can instantly log your expenses on the go.
Across the board, it’s worth finding a system that means you start on your tax return at the start of the year, rather than the end! Digital receipts are a great way to spend a bit of time as you go, rather than a lot of time at the end of the year.
3. Stamp out missed allowances
It’s easy to lose track of your outgoings when managing multiple projects. However, if you want to minimise your tax bill, keeping a record of all eligible tax breaks is vital. Materials, tools, uniforms, mileage and safety wear are just some of the expenses you could claim back. Backdate these by going through your bank statements, emails and receipts, to ensure you’ve not missed any allowances.
Hopefully, these three tips will help smooth the way towards a simpler and more relaxed tax season. Why not spend that extra time planning a new venture? Don’t forget to check out the latest businesses for sale on Daltons.
